LONDON (Alliance News) - Clipper Logistics PLC Friday reported a fall in profit for the full year following costs related to its initial public offering earlier this year, but said the business continues to perform strongly with growth across its main business segments.
Clipper Logistics, a value-added logistics services provider for the retail sector, posted pretax profit of GBP3.9 million for the year ended April 30, down from GBP5.2 million a year earlier, even though revenue rose 25% to GBP201.2 million from GBP160.7 million. It booked exceptional costs worth GBP2.5 million related to its initial public offering.
The company, which was admitted to the premium segment of the London Stock Exchange in June, said it made "excellent" progress during its last financial year with its e-fulfilment logistics business leading the way.
The e-fulfilment logistics division saw revenue rise 56% to GBP46.0 million from GBP29.6 million a year earlier. E-fulfilment operations include the receipt, warehousing, stock management, picking, packing and despatch of products on behalf of customers to support their online trading activities, as well as a range of ancillary support services.
Total logistics revenue, which incorporates e-fulfilment logistics and non e-fulfilment logistics revenue, rose 37% to GBP135.6 million from GBP98.9 million a year earlier.
Overall, the logistics division benefited from the full-year impact of contract wins secured in the previous financial year, including with retailers Claire's Accessories and Hobbycraft. This was in addition to the part-year impact of contacts won during the year, including ASOS PLC. The full-year benefit of these contracts will be realised in the year to April 2015, the company said.
Clipper Logistics also said its commercial-vehicle business made gains, with revenue up 25% to GBP1.8 million from GBP1.4 million.
The commercial vehicle business, Northern Commercials Ltd, operates Iveco and Fiat commercial vehicle dealerships from six locations, together with three sub-dealerships. It sells new and used vehicles, provides servicing and repair facilities, and sells parts. Vehicles sold and serviced range from small light commercial vans, through to articulated tractor units.
Looking ahead, Clipper Logistics said it has a strong new business pipeline. Post the year-end the company signed a five-year contract extension with Tesco PLC to provide additional services to support the retailers online clothing strategy.
"We continue to win new contracts within both e-fulfilment logistics and non e-fulfilment logistics, both in the UK and Europe, through our focus on our retail specialisms and provision of cost-effective, value-added solutions," Chairman Steve Parkin said in a statement. "We look forward to updating shareholders on these new contracts when they are formalised."
Clipper Logistics said its commercial vehicles business is expected to continue to deliver steady growth in profitability in the year to April 2015.
In addition, the group said current trading is in line with its strategic plans and it is confident of achieving another period of "excellent financial performance" in the year to April 2015.
Clipper Logistics shares were quoted down 1.6% at 150.00 pence Friday midday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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