Q3 Update

23 February 2015

Clipper Logistics PLC

Further progress achieved in Q3 and full year outlook confirmed

Clipper Logistics plc ("Clipper", "the Group" or "the Company"), a leading provider of value-added logistics solutions and e-fulfilment to the retail sector, is pleased to publish a trading update for the nine months to 31 January 2015.

Group

Clipper continues to perform in line with market expectations for the full year to 30 April 2015, in terms of both earnings and cashflow. A strong pipeline of new business within the Logistics sector is expected to provide continued upward momentum into 2016.

Logistics

Clipper's strategic positioning in the online fulfilment sector, including the management of returns through its Boomerang brand, has enabled the Group to benefit from the continuing trend towards online retailing.

The Group has seen growth in activity levels from virtually all customers for whom it provides e-fulfilment services, particularly over the pre-Christmas trading period including the Black Friday weekend, on which it achieved 100% of customer service proposition.

Boomerang, the Group's returns management proposition, continues to gain traction. We are particularly pleased with the new contract win with German retailer s.Oliver for the management of its European returns. This represents our first Boomerang contract in Europe; this is being implemented during 2015 and will be additive to earnings in 2016. In addition, we are discussing the provision of Boomerang services to a number of other retailers.

Clipper has renewed and extended contracts with a number of clients including New Look, with whom it has agreed a contract extension through to July 2019.

Commercial Vehicles

The commercial vehicles business has made steady progress in earnings growth, with profitability underpinned by higher margin servicing and parts activity.

Servicecare

The Group announced the acquisition of Servicecare Support Services Limited on 4 December 2014.

Servicecare is a specialist provider of returns logistics services to consumer electronics manufacturers and retailers. The acquisition is highly complementary to the Group's Boomerang proposition and its integration into Clipper has been seamless.

Servicecare has performed well in the period post-acquisition, and the Group is confident that its contribution to full-year earnings will be in line with plan.

Financial Position

The Group is in a strong financial position, with significant increases in earnings from both e-fulfilment and non e-fulfilment activities in the logistics sector, strong initial earnings from Servicecare, coupled with steady earnings growth in commercial vehicles.

The Group's working capital profile continues to provide strong cash generation from trading activities.

The outlook for the full year to 30 April 2015 is therefore consistent with market expectations.

Steve Parkin, Executive Chairman of Clipper, said:

"The Group's strategic positioning in the e-fulfilment sector, including the provision of returns management services, coupled with continued growth in non e-fulfilment logistics operations, has placed the Group in a strong position to achieve good year on year growth. The acquisition of Servicecare in December extends our service offering, and has been immediately earnings-enhancing.

Our progress in the current financial year, coupled with a strong new business pipeline, provides a solid basis for growth in future years."

About Clipper

Founded by Steve Parkin in 1992, Clipper is amongst the leading providers of value-added logistics solutions and e-fulfilment to the retail sector in the United Kingdom, with an expanding business in Germany and employs over 2,500 people. The Group provides consultancy-led services within the online fashion and non-food sectors to its blue chip client base including ASOS, The John Lewis Partnership, Asda, SuperGroup, Morrisons, New Look and Tesco.