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Dramatic growth for logistics group

2nd March 2006, Page 6
2nd March 2006
Page 6
Page 6, 2nd March 2006 — Dramatic growth for logistics group
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Which of the following most accurately describes the problem?

The fast-growing Clipper Group has unveiled a strong set of accounts

and dropped hints over future plans. Guy Sheppard reports.

YORKSHIRE LOGISTICS group Clipper is considering a stock market flotation next year to fund further rapid expansion.

The business was founded in 1992 by former van driver Steve Parkin to deliver clothing to shops.

Its latest results show the group's turnover jumped from £21.7m to £45m in the year to April 2005. Pre-tax profits doubled to £2m.

Finance director David Hodkin says annual turnover is now £125m: "From October 2004 our target was to reach a turnover of I 00m within three years. We surpassed that in 14 months,predominantly through organic growth."

The Brighouse-based group runs 600 vehicles. It has won several contracts with national clothing chains over the past year, including New Look and Harvey Nichols.

Most of its business involves added-value services such as putting clothing on hangers and adding bar codes rather than delivering to stores.

Clipper acquired DTS Logistics in 2004 for £10.5m and snapped up truck dealership Northern Commercials (Mirfield) three months ago.

Now it plans to increase turnover to £500m within five years. A stock market flotation in April 2(X)7 is one option being considered as a way to achieve this.

John Manners-Bell, chief analyst at Transport Intelligence, explains: "A flotation would give it extra funds with which to make more acquisitions." But he warns: "There have been plenty of companies with similarly ambitious plans which have come to nothing.

"Managing that level of growth would be very challenging."


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