Clipper Logistics (CLG) is continuing to capitalise on our penchant for online shopping, with revenue from e-fulfilment and returns management jumping by almost half to £234m in 2019. Existing customers such as Asos (ASC) and Zara expanded the services they require and a slew of new contracts were secured from the likes of Boohoo (BOO) subsidiary PrettyLittleThing. An improved click-and-collect performance and price increases with major customers meant the division’s operating profit rise by 14 per cent £13.6m.
But just under a third of sales still comes from logistics services provided to 'bricks and mortar' retailers. Amid tougher UK high street conditions, non e-fulfilment revenue growth was a more muted 4 per cent. With income from property-related advisory services (the optimising of warehousing arrangements) almost halving, and increased costs on a specific closed book contract, operating profit for the segment fell by 12 per cent to £13m.
Certain contracts signed towards the end of the year will be recognised in FY2020 meaning that overall operating profit of £20m was below market expectations - as warned - but will receive a £3m boost next year.
Berenberg anticipates pre-tax profit of £25m and EPS of 21p in 2020, rising to £27m and 22.4p in 2021.
| CLIPPER LOGISTICS (CLG) | ||||
| ORD PRICE: | 220p | MARKET VALUE: | £ 224m | |
| TOUCH: | 218-220p | 12-MONTH HIGH: | 326p | LOW: 210p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 42p* | NET DEBT: | 106% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 235 | 9.5 | 7.3 | 4.8 |
| 2016 | 290 | 13.1 | 10.3 | 6.0 |
| 2017 | 340 | 16.1 | 12.5 | 7.2 |
| 2018 | 400 | 18.0 | 14.2 | 8.4 |
| 2019 | 460 | 16.9 | 13.2 | 9.7 |
| % change | +15 | -6 | -7 | +15 |
| Ex-div: | 19 Sep | |||
| Payment: | 23 Oct | |||
| *Includes intangible assets of £37.3m or 37p a share | ||||
