Clipper Logistics PLC (LON:CLG) has reported a strong rise in profits in its first half as business was boosted by an accelerated shift to e-commerce during the coronavirus pandemic.
In its results for the six months to October 31, 2020, the group reported a pre-tax profit of £14.3mln, up 38.2% year-on-year, while revenues increased 19.8% to £305.2mln.
READ: Clipper Logistics highlights continued strong trading as pandemic accelerates shift to e-commerce
As a result of the improved earnings, the company’s interim dividend was hiked 14.3% to 4p per share, while cash generated from operations rose to £49.1mln from £19.1mln last year.
Clipper said it has “continued to see strong trading across the business” during the period and that it has increased its distribution centre portfolio to accommodate the increased activity. Clipper now manages 52 sites in the UK and mainland Europe with 14.5mln square feet of warehouse space.
Looking ahead, the firm said the momentum seen in the first half “will continue” into the rest of the year as new operations commence with high profile customers, with earnings for the full year now expected to be ahead of its previous expectations.
Clipper also reported a “successful Black Friday weekend” with many sites reporting record volumes, adding that it “remains positive about the longer-term outlook” and is “well-positioned to achieve further growth both in the UK and internationally”.
"Whilst conscious of the UK macro-economic climate, given our strategic positioning in the e-commerce sector, we remain positive about the long term outlook”, Clipper’s executive chairman Steve Parkin said in the results statement.
“Given this financial and operational momentum, Clipper remains confident that the group is well-positioned to achieve future growth, both in the UK and internationally", he added.