Thursday, April 22, 2021

Clipper signs two major new contracts

Clipper Logistics has secured two major new contracts which, it says, will enhance earnings for the next financial year.

The Leeds-based provider of value-added logistics solutions, e-fulfilment and returns management services to the retail sector has agreed in principle a new five-year open book contract with River Island.

The contract will see it provide a comprehensive suite of logistics services at River Island’s existing distribution centre in Milton Keynes.

Clipper already handles returns for River Island at the Group’s Ollerton distribution centre, but this contract represents a significant extension of services, with Clipper set to provide a full range of logistics operations, including warehousing, distribution to high street stores, and e-fulfilment and returns management services.

The new services are planned to commence in mid-2021.

Clipper has also signed a new ten-year open book contract with outdoor retailer Mountain Warehouse to provide a full range of multi-channel logistics services for the Mountain Warehouse business.

The new contract is expected to commence in spring 2021 with the contract employing approximately 220 colleagues.

Investment in automation and robotics will increase capacity to facilitate further growth for the customer, and the new contract will operate from Clipper’s existing Peterborough distribution centre.

This will be a fast-moving multi-channel logistics operation operating seven days per week. Clipper will provide full end-to-end services to support Mountain Warehouse’s multi-channel operations, including order fulfilment and returns management.

Together, these two new contracts will increase revenue by over £40 million on a full-year basis, and will be immediately earnings-enhancing from go-live.

As a result, the Group expects to outperform current market expectations in the year to 30 April 2022 and beyond.

Steve Parkin, Executive Chairman of Clipper, said: “Both contracts are a clear indication of the collaboration and use of shared resources that will define the retail logistics supply chain into the future.

“These contracts enhance our command of the end-to-end service proposition in online retail, and demonstrate that Clipper is also well-positioned to continue to support high street retail as it recovers from lockdown.

“Our strategy to focus on providing innovative solutions in both the online and traditional bricks and mortar retail landscapes continues to drive value for both our customers and shareholders.”

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