30th Jul 2018 09:56
LONDON (Alliance News) - Clipper Logistics PLC on Monday reported an increase in annual profit and revenue, though it did note weaker conditions in the retail sector in which it operates.
Shares were 23% lower on Monday, trading at a price of 311.35 pence each.
For the 12 months to April, Clipper - which provides logistics, e-fulfilment, and returns management services to the retail sector - posted revenue of GBP340.1 million, 18% higher year-on-year.
Pretax profit was GBP18.0 million, higher than the GBP16.1 million a year prior, mainly benefiting from the higher revenue.
Clipper is paying a final dividend of 5.6 pence per share, taking the year's total to 8.4p, up from 7.2p a year prior.
Looking segmentally, logistics services revenue increased by 19% year-on-year to GBP298.5 million, while commercial vehicles revenue rose by 13% to GBP103.6 million. The two divisions' respective earnings before interest and tax, which Clipper considers a key performance indicator, were up 18% to GBP21 million and 4.6% to GBP2.5 million, respectively.
Clipper said it was a year of "strong" financial performance, and it started new contracts with a number of retailers including ASOS PLC, Marks & Spencers Group PLC, and River Island, and it grew existing customer business.
In its new financial year, ending next April, Clipper expects revenue to be boosted by recent acquisitions and new contracts, while it also expects further Ebit growth.
The company said: "The board is confident of continued progress in the year ending April 2019. It notes weaker economic conditions, particularly in certain parts of the retail sector where there are widely reported headwinds.
"However, the group expects to achieve another year of positive momentum with overall growth in revenues and earnings."
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