Clipper Logistics

Last updated

Clipper Logistics plc
Company type Subsidiary
Industry Logistics
Founded1992;32 years ago (1992)
FounderSteve Parkin
Headquarters
Holbeck, Leeds, UK
Key people
[1]
RevenueIncrease2.svg £696.2 million (2021) [2]
Increase2.svg £39.8 million (2021) [2]
Increase2.svg £21.7 million (2021) [2]
Number of employees
9,148 (2021) [2]
Parent GXO Logistics
Subsidiaries
  • Servicecare Support Services Limited
  • RepairTech Limited
  • Northern Commercials (Mirfield) Limited
  • Stormont Truck and Van Limited
Website https://www.clippergroup.co.uk/

Clipper Logistics plc is a retail logistics company based in Leeds which serves retailers selling fashion, tobacco, alcohol and other high-value goods in the UK and Europe. It has 47 sites across Europe. [3] The company was listed on the London Stock Exchange until it was acquired by GXO Logistics in May 2022.

Contents

History

Early history

Steve Parkin founded Clipper Group in 1992 with one van delivering clothing for fashion stores. The company won a number of contracts in the early years with retailers such as Huddersfield-based Bonmarché and Sir Philip Green which helped it to become established in the transport, haulage and warehousing market. [4] The company made a number of acquisitions in the 2000s including DTS logistics Ltd, Gagewell Transport Ltd and Northern Commercials (Mirfield) Ltd [5] In 2014 the company was floated on the London Stock Exchange with a valuation of £100 million. [6]

Takeover Attempt

In November 2019, investment fund Sun Capital Partners, Inc. announced it was considering making a bid for the company, supported by founder and executive chairman Steve Parkin. [7] Discussions regarding a possible offer took place between the parties, and the views of a number of independent Clipper shareholders were sought. However, the board and Sun Capital were unable to agree on terms, consequently, both sides agreed to terminate discussions. [8]

Coronavirus pandemic support

In March 2020, the company was given a contract by the NHS Supply Chain for the delivery of personal protective equipment to NHS trusts and care homes. [9] This was considered to be controversial amid a scandal over the appointment of COVID-19 contracts in the United Kingdom and alleged cronyism in the British government, as Parkin is a top Conservative Party donor who has attended Leader's Group meetings ("the premier supporter Group of the Conservative Party") and donated £725,000 to the Conservative Party. [10] The company reported a 38.2 percent rise in interim pre-tax profits aided by "a successful Black Friday weekend" and was helped by a "significant increase in supporting Supply Chain Co-ordination (NHS) with the storage and distribution of PPE", processing "over 7.4 billion items of PPE on the NHS contract". [11]

Charity

In May 2020, the company donated a refrigerated trailer to the food bank run by Leeds United Foundation and Leeds City Council. [12]

Takeover

On 28 February 2022 GXO Logistics made a recommended offer for the company. [13] In May 2022, it was announced the acquisition had been completed. [14] According to GXO this will vastly increase the scope of its reverse logistics services, and provide a bridgehead into Germany. Clipper has been strong in repairs and returns logistics, especially in consumer electronics, and repaired around 1.5 million items during the year ended 30 April 2022. [15]

Operations

Corporate Affairs

Financials

Companies Finances
YearRevenue (£m)Operating Income (£m)Net Profit (£m)
2016 [19] 290.3314.5310.34
2017 [20] 340.1317.4712.47
2018 [21] 400.1220.8314.28
2019 [22] 460.1719.4813.41
2020 [23] 500.6731.4316.19
2021 [2] 696.2039.7721.66

Controversies

Staff at the company warehouse in Ollerton, Nottinghamshire complained in March 2020 that they were "crammed into corridors" and given no hand sanitiser. [24]

Sponsorship

Clipper has been a sponsor of Leeds United football club since 2017. [25]

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References

  1. ↑ "Team Members" . Retrieved 9 July 2020.
  2. 1 2 3 4 5 "Annual Report (2021)" (PDF). Clipper Logistics plc. 19 February 2021. Retrieved 19 February 2021.
  3. ↑ "Clipper Logistics CEO: We're 'agile and able' and the crisis has demonstrated our capabilities". Proactive Investor. 24 April 2020. Retrieved 16 May 2020.
  4. ↑ "PARKIN'S ROUTE TO SUCCESS..." Yorkshire Post. 14 June 2011. Retrieved 20 June 2020.
  5. ↑ "This year starts well for Clipper Logistics Group". 18 May 2007. Retrieved 22 June 2020.
  6. ↑ "Leeds' Clipper Logistics expected to raise £100 million from IPO". 30 May 2014. Retrieved 2 March 2022.
  7. ↑ "Clipper Logistics founder Steve Parkin teams up with Sun Capital Partners to prepare takeover bid". Motor Transport. 22 November 2019. Retrieved 11 December 2023.
  8. ↑ "The price wasn't right: sun capital pulls out of clipper logistics takeover". The Load Star. 20 January 2020. Retrieved 20 June 2020.
  9. ↑ "Retail logistics firm put in charge of crisis-hit PPE deliveries". Health Service Journal. 31 March 2020. Retrieved 16 May 2020.
  10. ↑ Ahmed, Nafeez (2 April 2020). "Disaster Capitalism: Conservative Party Donor Cashes in on UK Government-Made PPE Shortages Amidst COVID-19 Crisis". Byline Times. Retrieved 5 December 2020.
  11. ↑ Gosden, Emily (4 December 2020). "PPE contract puts wind in Clipper's sails". The Times. Retrieved 5 December 2020.(subscription required)
  12. ↑ "Clipper Logistics partners with Leeds United to support Food bank". SHD Logistics. 1 May 2020. Retrieved 16 May 2020.
  13. ↑ "Leeds-based Clipper Logistics set to be acquired by New York listed GXO Logistics after deal is agreed". www.yorkshirepost.co.uk. 28 February 2022.
  14. ↑ "GXO completes Clipper Logistics acquisition following court approval | Financial News". www.lse.co.uk. Retrieved 24 May 2022.
  15. ↑ "GXO eyes improved 'returns' as Clipper buy can boost reverse logistics offering". Loadstar. 9 November 2022. Retrieved 12 November 2022.
  16. ↑ "Superdry ramps up robotics in Burton DC with Hikrobot". Logistics manager. 6 May 2020. Retrieved 16 May 2020.
  17. ↑ "John Lewis and Clipper Logistics form joint venture company to deliver click and collect services". 3 November 2016. Retrieved 27 June 2020.
  18. ↑ "Clipper Logistics to replace DHL Supply Chain on Arcadia Group contract". 16 June 2020. Retrieved 8 July 2020.
  19. ↑ "Annual Report 2016" (PDF). Retrieved 11 March 2021.
  20. ↑ "Annual Report 2017" (PDF). Retrieved 11 March 2021.
  21. ↑ "Annual Report 2018" (PDF). Retrieved 11 March 2021.
  22. ↑ "Annual Report 2019" (PDF). Retrieved 11 March 2021.
  23. ↑ "Annual Report 2020" (PDF). Retrieved 11 March 2021.
  24. ↑ "Coronavirus: Clothing warehouse 'putting lives at risk'". BBC. 31 March 2020. Retrieved 16 May 2020.
  25. ↑ "Clipper extends Leeds United sponsorship deal". 10 March 2017. Retrieved 27 June 2020.
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