Clipper Logistics has announced its preliminary results for the year ended 30 April 2018. Group revenue increased by 17.6% from £340.1 million, to £400.1 million as Group EBIT climbed 16.3% from £17.9 million to £20.9 million. Group profit for the financial year increased by 14.6%, from £12.5 million to £14.3 million.
E-fulfilment & returns management services grew revenues by 22.7% to £159.4 million, as Non e-fulfilment logistics saw revenues increase 14.1% to £139.1 million. The Group’s Commercial Vehicle unit increased sales by 13.2% to £103.6 million.
E-fulfilment & returns management services recorded a 16.0% increase in EBIT, to £11.9 million as Non e-fulfilment logistics grew EBIT by 18.9% to reach £14.8 million. Commercial Vehicles saw EBIT increase 4.6% to £2.5 million.
In E-fulfilment & returns management services, Clipper's ability and agility, particularly in respect of omni-channel, multi-channel, returns management, Click and Collect and mechanisation have enabled it to significantly grow revenues and earnings, and to once again outperform market growth (the UK eCommerce market grew by 12.0% in the calendar year 2017).
During the year, the Company commenced significant new contracts with high profile retailers including Edinburgh Woollen Mill, River Island, M&S and ASOS. It acquired RepairTech Limited in June 2017. This was immediately earnings-enhancing and successfully amalgamated with Servicecare to create a new Technical Services operation. Clipper also acquired Tesam Distribution Limited in May 2017. This was immediately earnings-enhancing and successfully integrated into UK logistics by the year end. The Company also opened its first facility in Poland, where it has already secured three new contract wins.
Looking ahead, the Company will continue to identify key trends in the sectors it serves, and develop new services, processes and solutions that address the needs and challenges of customers.
In the logistics sector, Clipper has a high proportion of revenue from open book or minimum volume guarantee contracts, whilst in the commercial vehicles sector much of the profit and cash streams come from servicing and parts activities which are extremely stable. These contract mechanics provide a good degree of protection to the Group's earnings and cashflows. The Company is, however, mindful of the wider economic climate, and in particular of the headwinds facing customers in the retail sector.
The recent acquisitions of Tesam and RepairTech have been immediately earnings-enhancing. Across the two acquisitions, there is significant customer overlap with the existing Clipper Group portfolio and so the Group expects to enhance its reputation with these customers, and also to leverage existing customers with additional service lines.