The rising popularity of online shopping has been good for Clipper Logistics (CLG). Revenue from its e-fulfilment and returns management division, which manages the shipping and returns system for a number of retailers including Zara and Asos, increased by a third over the past year to £130m. In November, the company also launched its Clicklink joint venture with John Lewis after it was hired to operate the product distribution for all Waitrose stores (up from 33 per cent of locations previously). The company is in talks to extend the Clicklink click-and-collect service to other retailers, which management expects to provide a significant boost to income.
Elsewhere, revenue from logistics operations outside of e-fulfilment, which includes product storage for retailers, was up 12.5 per cent to £122m as the company felt the full-year effect of contracts with M&Co and Pep&Co and continues on with existing contracts with M&S and Morrissons.
Analysts at Numis expect pre-tax profit of £20.2m in the year to April 2018, giving an EPS of 15.5p, compared with £16.3m and 12.3pin FY2017.
| CLIPPER LOGISTICS (CLG) | ||||
| ORD PRICE: | 435p | MARKET VALUE: | £436m | |
| TOUCH: | 435-437p | 12-MONTH HIGH: | 458p | LOW: 252p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 30p* | NET DEBT: | 83% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 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 |
| 2017 | 340 | 16.1 | 12.5 | 7.2 |
| % change | +17 | +22 | +21 | +20 |
| Ex-div: | 7 Sep | |||
| Payment: | 29 Sep | |||
| *Includes intangible assets of £24.8m, or 24.7p a share | ||||
