Clipper Logistics' results buoyed by contract wins and online shoppers

Clipper Logistics reported on Thursday that interim revenue and profits climbed by double digits after the company secured a number of major contracts.

For the six months ended 31 October, the retail logistics provider’s revenue jumped to £227.9m, up 14% from the same period last year, while profit before tax increased by 17% to £9.3m.

Figures were assisted by major new contracts with retailers such as Sports Direct, Halfords, Browns and Silkfred, as well as ongoing developments with previously existing customers Asda, ASOS and Wilko.

Steve Parkin, executive chairman of Clipper, 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."

Clipper has benefited from a continued rise in demand for click-and-collect services through its Clicklink solution, which has been picked up by Urban Outfitters and Supergroup.

Consequently, the London-listed company hiked its interim dividend by 14% to 3.2p per share, rising from 2.8p, while cash and cash equivalents improved from £0.9m to £2.1m.

"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. We have a strong new business pipeline and look forward to continuing to update shareholders as we convert these opportunities," said Parkin.

Clipper Logistics’ shares were down 4.89% at 280.00p at 1311 GMT.