Clipper Logistics PLC (LSE:CLG) hiked its half-year dividend 12.5% as sales and earnings continue to grow at double-digit rates, with the company on track to meet full-year targets.
The provider of value-added logistics solutions, e-fulfilment and returns management said revenue increased 33.1% to £406.1mln in the six months ended 31 October. This figure was boosted by contracts secured in the prior year with H&M, Linenbundle, Revolution Beauty and TM Lewin, as well as new deals with JD Sports, River Island and Farfetch and additional services for John Lewis, Wilko and ASOS.
Underlying earnings (EBIT) increased 12.1% to £22.6mln due to strong revenue growth in value-added logistics, while statutory profit before tax rose 12.6% to £16.1mln.
With net cash from operations of £32.5mln, which compared to £45.7mln last year when the company enjoyed a payment deferral benefit of £18.3mln, the board declared an interim dividend of 4.5p compared to 4p a year ago.
Clipper entered into a joint venture agreement in November with Farfetch to create a global e-fulfilment solution for their products which will initially target new US and Asian markets when it launches early in 2022.
Chief executive Steve Parkin said the joint venture focusing on the luxury online market “will significantly extend our geographical reach further both in Europe and further afield”.
He said last month’s €12.5mln acquisition of Netherlands-based CE Repair will extend the group’s offering and geographical reach within mainland Europe.
He said group trading “continues to be strong” and the board remains positive on the outlook for the current year and the longer-term and believes it “is well positioned to achieve further growth both in the UK and internationally, with strong tailwinds and significant further M&A activity”.