Clipper Logistics PLC (LON:CLG) said it experienced “unprecedented levels of activity” in its logistics operations in both the UK and continental Europe over the Black Friday and Christmas trading periods.
In a trading update, the firm said that over November and December revenues for its logistics business were 50% higher year-on-year, with “strong growth” in both its e-commerce and non e-fulfilment services, continuing what Clipper said was a strong performance in the first half of its financial year.
The company also noted that it has fulfilled its one-billionth item of personal protective equipment (PPE) ordered online through a portal established with eBay in spring last year, adding that the service has now been beyond local health care providers including GP surgeries and nursing homes to educational and other communal establishments.
While Clipper said the additional revenues “will not necessarily have a proportionate impact on operating profit” given its contract mechanisms, it said the activity levels provided it with “an excellent level of confidence in the year ahead” and that it is continuing to enjoy a strong pipeline of new business opportunities.
“Our strategic positioning in supporting the online trading of retailers both in the UK and Europe places us in a strong position to continue to deliver excellent returns to our shareholders. I am immensely proud of the ability of our teams across the business to continue to support our customers’ exceptional growth. The strength of both our underlying markets and our new business activity provide us with an excellent level of confidence in the year ahead”, Clipper executive chairman Steve Parkin said in a statement.
In a note on Wednesday, analysts at house broker Shore Capital said the update was “highly positive” and they saw “scope to the upside” of their current revenue forecasts for the company’s 2021 financial year.
“Clipper is well placed strategically in the UK e-commerce market and has an opportunity to help replicate its success in the fragmented European market. Whilst the valuation metrics look fulsome, we believe that this is a quality growth story and would anticipate further outperformance, given the positive trading update”, the broker added.