Clipper Logistics (CLG) only released an in-line trading update as recently as 16 November, so these first-half performance numbers did not take investors by surprise. Underlying earnings before interest and taxation – a “key performance measure” for the company, according to chief financial officer David Hodkin – rose by nearly a fifth to £9.2m, reflecting strong growth across e-fulfilment and returns management services, as well as a strong performance in the commercial vehicles division.
The group has won click-and-collect contracts with new retail clients, including SuperDry owner SuperGroup (SGP) and teen fashion chain Urban Outfitters, while new logistical services were added for a roster of existing clients, including Marks and Spencer (MKS) and River Island. International services continue to grow, too, with the commencement of returns operation with online fast-fashion chain Asos (ASC) in Poland. Management said the future pipeline for new contracts was strong, but stopped short of naming names.
As for how Brexit could affect the industry, Mr Parkin said management is relaxed, although he admitted continuation of the single market for goods as it currently works would be “the ideal outcome” for companies such as his.
Analysts at broker N+1 Singer expect pre-tax profits of £20.5m for the year ending April 2018, giving EPS of 16.3p, compared with £16.2m and 12.4p in FY2017.
| CLIPPER LOGISTICS (CLG) | ||||
| ORD PRICE: | 415p | MARKET VALUE: | £ 416m | |
| TOUCH: | 415-420p | 12-MONTH HIGH: | 458p | LOW: 335p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 32p* | NET DEBT: | 119% | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 165 | 6.9 | 5.3 | 2.4 |
| 2017 | 200 | 7.9 | 6.3 | 2.8 |
| % change | +21 | +16 | +19 | +17 |
| Ex-div: | 14 Dec | |||
| Payment: | 5 Jan | |||
| *Includes intangible assets of £36.8m, or 37p a share | ||||
