Clipper hikes divi as profits and revenues rise

Clipper Logistics posts pre-tax profits of £6.9 million for the six months to the end of October -25.5% up on last time.

Group revenue rose by 16.5% to £164.9 million and EBIT rose 23.2% to £7.6 million, reflecting strong performance across all service lines:

* E-fulfilment and returns management services EBIT up 21.7% to £4.2 million (2015: £3.5 million)

* Non e-fulfilment logistics EBIT up 18.9% to £5.9 million (2015: £5.0 million)

*Commercial vehicles EBIT up 20.4% to £1.3 million (2015: £1.1 million)

Earnings per share rose by 23.3% to 5.3 pence and the interim dividend increased by 20.0% to 2.4 pence per share.

Executive chairman Steve Parkin said: "I am pleased to confirm that the Group has once again delivered strong results in line with the Board's expectations.

"Revenue and profit growth has been strong in all sectors, and we have improved further our operating cashflow.

"Our market-leading position in the high-growth area of e-fulfilment and associated services, has been enhanced further by the recent formalisation of a Joint Venture with John Lewis to provide a Click and Collect service dedicated to the needs of high street retailers. We expect this to significantly enhance profits in future financial periods.

"The first half of the current financial year saw strong organic growth on existing contracts, particularly in the e-commerce sector, and this was complemented by a number of new contract wins.

"The new business pipeline continues to be strong, and we expect the positive momentum from existing and new contracts to continue into the second half of the year.

"The Group is pleased to announce an increased interim dividend of 2.4 pence per share, which will be paid to shareholders on 30 December 2016.

"The Board remains confident for the future, and look forward to updating our shareholders and the markets throughout the year."

At 8:19am: (LON:CLG) Clipper Logistics share price was +18p at 380p