6th Dec 2018 12:00
LONDON (Alliance News) - Clipper Logistics PLC on Thursday hiked its payout following a double-digit rise in revenue and profit in the first half of its current financial year.
The logistics solutions and returns management services firm said pretax profit rose by 17% to GBP9.3 million in the six months to the end of October from GBP7.9 million reported for the same period a year ago, as revenue grew by 14% to GBP227.9 million from GBP199.7 million.
Clipper Logistics declared an interim dividend of 3.2 pence a share, up 14% from 2.8p paid the year before.
To support its continued growth, Clipper has increased its overhead investment in quality people and its back-office systems, it said. As a result, administration and other expenses rose to GBP52.3 million from GBP48.3 million year-on-year.
Central logistics costs were in line with prior year at GBP2.5 million, while head office costs decreased slightly to GBP1.2 million from GBP1.3 million the year prior.
Looking forward, the company said trading continued to perform well in the early part of the second half of its financial year.
However, Clipper noted that it experienced some localised pressures on the availability of seasonal labour, in part due to continued Brexit uncertainties and competitive market pressures around labour rates.
"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," said Executive Chairman Steve Parkin.
"We have a strong new business pipeline and look forward to continuing to update shareholders as we convert these opportunities," added Parkin.
Clipper Logistics shares were trading down 1.7% on Thursday at 285.00p each.
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