Clipper Logistics plc announced that it has been appointed by s.Oliver to manage its European wholesale and retail returns management service. This represents the company's first Boomerang contract in mainland Europe. The contract win represents a major advance for Clipper's European operations.

The Boomerang returns management service will be delivered from Clipper's existing solutions centres in Munchberg and Hof. As a condition of the contract, s.Oliver sought to dispose of the freehold of the Munchberg site to Clipper. Clipper operates an asset-light business model and does not currently own any of the sites that it provides its services from, therefore the Munchberg site has been acquired by Knaresborough Real Estate Limited, a related party to Clipper through its ownership by Executive Chairman Steve Parkin, and will continue to be leased to Clipper on the same terms and monthly rent as previously in place with s.Oliver, being EUR 37,500 per month, for a term of ten years.

This lease arrangement will allow Clipper to retain its asset-light business model, and falls within LR 11.1.10R (smaller related party transactions).