Clipper Logistics, a prominent provider of logistics solutions, e-fulfilment, and returns management services, has recently announced impressive performance and ambitious plans for future growth. In its trading update for the year ended on April 30th, the company highlighted its ability to adapt and thrive in the rapidly changing e-commerce and retail landscape.

Executive chairman Steve Parkin emphasized the vital role that Clipper Logistics has played in helping retailers overcome challenges and adapt quickly. This has resulted in a significant increase in contract wins both in the UK and Mainland Europe. Notably, Clipper has extended its contract with ASOS, a popular online fashion retailer, by an additional three years.

Clipper Logistics is strategically positioned to take full advantage of the structural shift towards online retail. With this in mind, the company has revised its guidance for both FY22 and FY23, demonstrating strong confidence in its future growth prospects.

The company’s robust performance in FY21 has contributed to these optimistic outlooks. Core earnings (EBIT) for the full year increased by an impressive 53% to £31.6 million on an underlying basis. The company also expects its revenue to rise by 39% to £698 million in FY21, primarily driven by a combination of organic growth and new contract wins. EBIT is anticipated to reach £40.2 million, in line with market consensus, marking a 39% increase from the previous year.

The rapid acceleration of the shift to online retail due to the COVID-19 pandemic has been a significant factor in Clipper Logistics’ positive outlook. The company expects this momentum to continue, particularly in e-fulfilment activities. However, Clipper also highlights the strong performance of its non e-fulfilment services, which have benefited from new contract wins. Retailers increasingly seek to outsource and collaborate to share costs, which aligns well with Clipper’s shared-user network.

Clipper Logistics has successfully secured significant new contracts in the e-fulfilment and returns management sector. Notable clients include River Island, Mountain Warehouse, Joules, Revolution Beauty, and JD Sports in the UK. In April, the company also won a new contract with Farfetch in the Netherlands. Its e-commerce growth in Mainland Europe has been robust, and the company has played a vital role in helping retailers efficiently deliver into Europe following Brexit.

The extended returns management services contract with ASOS will enable the retailer to consolidate its mainland European returns into Clipper’s facility. This strategic partnership further strengthens Clipper’s leading position in the e-commerce and retail logistics sector.

Overall, Clipper Logistics has successfully navigated a challenging trading year and is now poised for substantial growth in the coming years. With its expertise in e-fulfilment, returns management, and shared-user networks, the company is well-positioned to capitalize on the ongoing shift to online retail and become a global enabler of e-commerce and retail logistics.

Useful links:

1. Clipper Logistics Official Website
2. ASOS Official Website