(Alliance News) - Clipper Logistics PLC on Friday boosted its annual dividend despite a drop in profit after a rise in costs.
Clipper is paying a final dividend of 6.5 pence per share for its year ended April, meaning the year's total is 16% higher than 9.7p paid the year before.
Clipper's annual pretax profit slipped 6.1% to GBP16.9 million, due to higher costs, but there was strong revenue growth of 15% to GBP460.2 million.
The logistics firm achieved "significant" organic growth in the both the UK and Europe, it said, despite challenging market conditions in the retail sector.
A number of significant contracts were signed during the year with retailers such as boohoo Group PLC and Sports Direct International PLC in the UK, while in Europe, Clipper sealed a contract with ASOS PLC.
"The financial year ended April 2019 has seen a continuation of our long-standing track record of achieving significant organic revenue growth, complemented by the benefit of strategic, value enhancing acquisitions made in previous years," said Executive Chair Steve Parkin.
"The group continues to focus on developing innovative, cost-effective solutions that address the needs of our blue-chip client base, predominantly in the retail sector. We continue to invest in quality people to implement sector leading projects, and this, together with our ability to identify key trends and developments in the sectors we serve, means we are confident in our ability to continue this momentum."
Clipper did warn, however, that UK economic uncertainty "may well" have some impact in its new financial year, but the outlook is positive nonetheless.
"We are conscious of the challenging market conditions facing UK retailers and the macroeconomic uncertainty within the UK economy; this may well have some impact in the year ahead, but we remain confident in our ability to continue the momentum in the business and are well-positioned to continue to deliver strong returns to our shareholders," Parkin added.
London-listed shares in Clipper Logistics opened 2.8% higher at 219.00 pence each on Friday.
