Clipper profits up 16% thanks to e-fulfilment

Clipper Logistics saw operating profits grow by 16% in the first half. This was driven by a strong performance in e-fulfilment and returns management.

Revenue at Clipper in the six months to 31 October grew 14.1% to £227.9 million. EBIT went up 16.1% to £10.7 million.

Chairman Steve Parkin said: “The group continues to be exceptionally well-placed to benefit from the continuing migration to online retailing and the increasing propensity for consumers to choose click-and-collect services when placing orders online.

“Our recent contract wins, including Sports Direct and an extended relationship with Halfords, provide significant earnings momentum into the second half of the current financial year and beyond.

“We are excited about the future growth of our European operations, as the contracts with s.Oliver, ASOS and Westwing evolve.”

Parkin concluded, “Clicklink is now well-positioned to enhance group earnings, with new clients being introduced to the network, and enhanced rates having been agreed with key customers as the benefits of using the service become evident to retailers.”

Looking ahead, the company said in its trading statement: “Trading continues to perform well in the early part of the second half of the year, underpinned by a strong business development pipeline with varying scales and at various stages of progression, albeit with the majority not scheduled to start until the financial year commencing 1 May 2019.”

Clipper and its market are covered in our recent report: UK e-fulfilment: Market Insight Report 2018-19