Daily Trade News

Clipper Logistics PLC ups guidance for next two years amid new

The upgraded guidance followed a strong year for the group which saw its earnings jump 53% alongside 39% growth in revenues as the pandemic accelerated a boom in e-commerce activity

() said it now expects its earnings for its 2022 and 2023 financial years to be “ahead of company-compiled consensus” by mid-single-digit percentages following what it said was a strong performance in its current year as well as new acquisitions and extensions of existing contracts.

In a trading update for the year ended April 30, the logistics, e-fulfilment and returns management services provider said it had performed strongly over the period, with full-year earnings (EBIT) expected to be in line with expectations of £31.6mln, a 53% increase year-on-year, with revenue growth of 39% to £698mln.

READ: Clipper Logistics to supplement JD Sports ‘ e-fulfilment services

The company noted an acceleration to online shopping last year during the pandemic, adding that it also expects to see “continuing momentum” in e-fulfilment activities post-pandemic amid a “significant number of new contract wins” during the year. The group also said its non-e-fulfilment services had performed well also due to a number of new contracts.

Clipper added that it continues to have “a strong new business pipeline” and will update the market in due course.

New acquisition and contract extension

Meanwhile, the company said it has expanded its reach into the life sciences vertical with its acquisition of Wippet Ltd, a UK healthcare-focused B2B marketplace.

Clipper said Wippet will launch in September as a B2B online marketplace initially targeting buyers from the fragmented elderly care market, with orders through the platform fulfilled by Clipper or directly by the vendor.

Elsewhere, the group said it has also agreed a three-year extension to its contract with online clothing retailer () that will see the company consolidate its mainland European returns services into Clipper’s facility at Poznan in Poland. The firm added that it has been encouraged by “immediate growth in volumes in recent weeks” following the extension.

Momentum expected to continue

Looking ahead, Clipper said it remains confident in its prospects for the new financial year and over the medium term, adding that it expects current momentum from new and existing contract wins to continue given the accelerated shift to online shopping.

The company also said it expects continued growth in its e-fulfilment and returns management services, adding that it will also benefit from the “mega-trend towards outsourcing as retailers seek to share resources and collaborate to improve service, reduce costs, and focus on their core business”.

Clipper added that it is also looking forward to further expansion in Europe as bricks and mortar retailers reopened and online retailing continued to grow, and that it is continuing to explore “potential [merger & acquisition] opportunities in mainland…

Read More: Clipper Logistics PLC ups guidance for next two years amid new