Clipper Logistics saw its EBITA profit rise 19% year-on-year despite the impact of lockdown on the final five weeks of its financial year.
In a statement to investors Clipper said that it had traded well throughout its financial year ending 30 April which would result in an EBITA of approximately £24 million.
Executive chairman Steve Parkin said that throughout the Covid-19 pandemic, Clipper had demonstrated its “agility and ability” to focus on customer service and provide “innovative solutions”.
“We’re now moving faster than ever,” said Parkin, “accelerating development and evolving to meet the expectations of both our retailers and their consumers, as the shift to online continues to accelerate.
“Nearly 70% of our revenue in both our UK and European logistics operations is derived from online retail. We are looking to the future with confidence.”
Covid-19 response
Clipper told investors that following an initial period of disruption following the introduction of lockdown on 23 March, Clipper had experienced “strong levels of activity from both new and existing clients”.
It said it was seeing some e-commerce volume increases of over 100% on a like-for-like basis with some online retailers experiencing demand that was regularly outstripping that seen over the Black Friday period last year.
April also saw Clipper roll-out additional services for customers including Tesco, Asda and Morrisons as well as beginning supply chain support for the NHS including the warehousing and distribution of PPE to hospitals.
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Clipper said that the new activities brought on since lockdown, coupled with new contracts beginning in the first quarter of financial year 2021 would add a further 1.5 million sq ft of space to Clipper’s pre-existing 10 million sq ft of warehousing infrastructure.
Clipper also said that it had seen a significant increase in its tender pipeline and the “annualised revenue of the probability-weighted pipeline” stood at over £50 million as of 18 May 2020, which it described as a significant increase on the same period last year.
Clipper Logistics are sponsors of the Supply Chain Operations Awards at the 24th Supply Chain Excellence Awards, which takes place on 12 November. For more information, including how to enter and sponsorship opportunities, contact daniel.jessop@akabomedia.co.uk
