There might be doubts about the strength of consumer confidence right now, but internet shopping is a juggernaut unlikely to stop anytime soon. That leaves e-commerce goods distributor Clipper Logistics (CLG) in a good position. Research quoted by management showed that the UK e-commerce market had grown from £0.8bn in 2000 to £114bn in 2015.
This helps explain the 48 per cent rise in adjusted operating profits, to £8.1m, from Clipper's e-fulfilment and returns service. That's still lower than the £10.7m figure from its more traditional logistics business, but the former will "ultimately overtake" the latter, according to chief financial officer David Hodkin. The group is now running John Lewis's Click and Collect service across the entire Waitrose estate after a successful trial at 115 stores and Clipper is touting a similar service for other clients. New contracts have been signed with Browns and M&Co, while work has started on other deals won in 2015, including with high-street chain Zara.
Analysts at Numis expect pre-tax profits of £16.6m and EPS of 12.7p for the year to April 2017, up from £13.3m and 10.3p in FY2016.
| CLIPPER LOGISTICS (CLG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 295p | MARKET VALUE: | £295m | |
| TOUCH: | 280-295p | 12-MONTH HIGH: | 310p | LOW: 207p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 23p* | NET DEBT: | 19% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 167 | 5.2 | na | na |
| 2013 | 161 | 5.2 | na | na |
| 2014 | 201 | 3.9 | 2.8 | na |
| 2015 | 235 | 9.5 | 7.3 | 4.8 |
| 2016 | 290 | 13.1 | 10.3 | 6.0 |
| % change | +24 | +38 | +41 | +25 |
Ex-div: 22 Sep Payment: 20 Oct *Includes intangible assets of £24.9m, or 24.9p a share | ||||
