Clipper Logistics shares soar as revenue tops £500m

Shares of Leeds-based retail logistics firm Clipper Logistics jumped about 9% on Monday after it said its revenue rose 8.8% to £500.7 million in the year ended April 30 and that it expects its results for the year ending April 30, 2021 “will comfortably exceed market expectations.”

Clipper will recommend a final dividend of 6.2p per share, making a total dividend of 9.7p, the same as 2019.

Pre-tax profit rose 19% to £20.1 million.

Clipper shares rose 9% to 440p to give the firm a current stock market value of around £411 million. Its shares have soared 80% in the past 12 months.

Clipper said it reacted quickly following the outbreak of COVID-19 to meet high demand for additional distribution capability from new and existing food retail customers including Tesco, Asda and Morrisons.

It said it started new contracts with customers such as Amara, Joules, N Brown, the NHS, SLG and the Very Group — and expanded existing contracts with customers including PrettyLittleThing.com, Neon Sheep, Levi Strauss, Sports Direct, Vestel and Ginger Ray.

In its outlook, Clipper said: “General economic conditions remain uncertain due to the COVID-19 pandemic.

“However, the group has experienced a very positive start to the new financial year, with exceptionally high levels of demand for its e-fulfilment and returns management services in particular.

“Consequently, the board anticipates that the group’s results for the year ending 30 April 2021 will comfortably exceed market expectations.” 

Clipper Logistics executive chairman Steve Parkin said: “I am delighted to report such a strong set of final results as Clipper reaches a significant milestone, delivering record revenues exceeding £0.5 billion.

“This has been driven by strong organic growth in the period, particularly in e-fulfilment, and value-enhancing acquisitions made in prior years.

“The impact of Government restrictions affected many of our retail clients, however it was testament to our long standing and proactive client relationships and broad service offering that activity levels have swiftly bounced back and have since achieved record levels after the initial disruption.

“There will, without doubt, be longer term changes to the retail landscape however we are confident that our ability to evolve our solutions to meet client needs will ensure that Clipper benefits from these trends as the shift to online retail accelerates.

“Recent contract wins, together with a strong pipeline of new business activity and the further evolution of our Click and Collect proposition, we believe place the group in an excellent position to achieve further growth both in the UK and internationally and we look forward to the new financial year with confidence as we continue to deliver shareholder value.”

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