Shares of Leeds-based fashion and retail logistics firm Clipper Logistics plc fell about 20% on Monday despite the firm announcing its revenue increased 17.6% to £400.1 million in the year to April 30 and profit increased 14.6% to £14.3 million.

The market reacted to Clipper Logistics’ executive chairman Steve Parkin’s comments that “wider forces affecting the UK retail sector … means that we have to bring an element of caution into our planning …”

Nonetheless, Clipper Logistics is recommending a 16.7% increase in dividend for the year to 8.4p.

Clipper Logistics also started significant new contracts during the year with retailers including Edinburgh Woollen Mill, River Island, M&S and ASOS — and more recently commenced a large “e-fulfilment operation” for boohoo.com subsidiary Pretty Little Thing.

Parkin said: “Our latest set of full year results show continued strong EBIT growth, growth achieved through remaining true to each of our core strategic principles: expanding the customer base, developing complementary services for customers, continuing to expand in Europe and identifying and seeking targeted, complementary acquisitions …

“We are conscious of the wider forces affecting the UK retail sector; whilst this means that we have to bring an element of caution into our planning, recent contract wins, together with a strong pipeline of new business activity and the further evolution of our Click and Collect proposition, leave the group well positioned to achieve further growth both in the UK and internationally.”