Infrastructure investment update
SuperGroup Plc
Infrastructure investment update:
Retail and e-commerce distribution centre, Burton-on-Trent
SuperGroup Plc ("SuperGroup" or "the Group") today provides an update on its infrastructure investment plans.
At the interim results presentation, on 12 December 2012, the Group noted that the its existing retail distribution configuration, whilst fit for purpose for the immediate future, is an operation with sub-optimal cost structures and is inadequate to support medium to long term capacity requirements.
The Group is pleased to announce that it has entered into a long term agreement with Clipper Logistics to provide an on-going operational solution for the fulfilment of the Group's multi-channel retail activities from a new distribution centre in Burton-on-Trent.
With 500,000 square feet of space1, the distribution centre will support the Group's growth aspirations in its next phase of development. The existing distribution capacity at Gloucester Park and Barnwood will continue to operate whilst the new facility is being developed, with the Burton site in full operation towards the end of financial year 2014.
The new distribution centre is ideally located for national carrier networks to supply the Group's retail outlets more efficiently and to support fulfilment of the Group's internet operations both in the UK and internationally. This operating capability will support planned growth for at least the next five years.
The new facility will require a capital investment of circa £5m. After the initial set-up and transition phase this investment will deliver an opportunity for the Group to generate significant cost savings and improve operating margins.
Underlying profit before tax for financial year 2013 is not affected by this investment.
Julian Dunkerton, Chief Executive of SuperGroup commented:
"This investment marks SuperGroup moving into the next major phase of development and equipping itself to meet its increasing sales ambition. Ideally located, SuperGroup will have a highly efficient UK distribution centre, enabling the Group to generate both financial and operational benefits and provide a platform for us to meet the increasing demands of e-fulfilment."
15 April 2013
Note:
1. Distribution centre space:
Floor foot print 320,000 square feet
Mezzanine 200,000 square feet
Forthcoming News flow
Q4 trading update 9 May 2013
Preliminary results 11 July 2013
Editor notes
Clipper Logistics Limited was founded in 1992 and is now one of the UK's leading independent logistics companies with a turnover of £200 million.
Clipper provides its customers with unique logistics solutions to suit their needs. The Group's willingness to challenge the status quo and quickly embrace change, makes it an attractive choice for retailers and provides invaluable expertise in fashion and high-value logistics. Clipper have an enviable position as they are a highly regarded retail logistics, and market leading e-fulfilment, provider, making them an ideal partner in the multi-channel retail arena.
With the Group's principles of reliability and flexibility, and through a series of handpicked strategic acquisitions and organic growth, Clipper has created a new breed of logistics and transportation solution providers.
Key Clipper statistics:
· One of the UK's leading independent logistics companies with a turnover of £200m
· Circa 3,000 highly-skilled, long-serving employees
· A network of 32 sites across the UK and Germany
· 6.5 million square feet of warehousing space
· A fleet of over 400 vehicles
Cautionary statement
This announcement contains certain forward-looking statements with respect to the financial condition and operational results of SuperGroup plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, SuperGroup plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.
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For further information: |
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SuperGroup |
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Shaun Wills, Chief Financial Officer |
+44 (0) 1242 588089 |
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Tony Newbould , Investor Relations Officer |
+44 (0) 1242 586464 |
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College Hill |
+44 (0) 20 7457 2020 |
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Matthew Smallwood |
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Justine Warren |
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This information is provided by RNS
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