Clipper Logistics, the firm that distributes goods for blue chip retailers such as Asda, Morrisons, John Lewis and ASOS, reported a strong pipeline of new business opportunities as it announced a 67 per cent leap in half year profits.
The Leeds-based firm said profits rose to £3.6m in the six months to October 31.
It also announced the £5.7m acquisition of Servicecare Support Services which will extend the group’s returns management operations to electrical items. Servicecare’s client base includes Argos, Richer Sounds, Panasonic, Shop Direct Group and Tefal.
Clipper’s chief executive Tony Mannix said: “Servicecare gives us another edge. It is very good at repackaging the products and repairing them so retailers can get full value back or sell on.”
The deal will also give Clipper the opportunity to cross sell its new electricals expertise to existing customers like John Lewis, Asda and Tesco.
“Everybody has been ecstatic about Servicecare becoming part of Clipper,” said Mr Mannix.
Clipper believes that returns management is an increasingly important area for retailers. In the UK between 25 and 40 per cent of all clothing and footwear purchases are returned.
Steve Parkin, executive chairman of Clipper, said the recent IPO has boosted the group’s credibility.
“The IPO has given us gravitas. We were seen as a growing Northern player and we’re now a national presence. We’re seen as very solid.”