The migration to online retail continues to boost Clipper Logistics (CLG), with e-fulfilment and returns management largely responsible for revenue growth during the first half of the year. Benefitting from the ramp-up of new contracts, underlying operating profit from the segment grew by 7 per cent to £6.7m. The group is hoping future growth can come from its Clicklink joint venture, which serves the ‘click and collect’ market. Operating losses at Clicklink narrowed to £0.5m and with price increases implemented last November and over two-fifths of revenue generated in the third quarter, the division is expected to generate between £1.2-1.4m of operating profit for the full year.
With an increase in trade debtors (money owed to the company), cash generated from operations dropped from £10.1m to £2.2m on a like-for-like basis. The accrued revenue is expected to be recovered in the second half, but has contributed to a 53 per cent increase in net debt (excluding lease liabilities) to £64.4m. This figure also reflects income yet to be recognised from the group’s open book contract arrangements – clients are charged for costs incurred in delivering a service, but these are collected across the term of the contract.
Bloomberg consensus places pre-tax profit at £24.8m and EPS at 19.4p for the full year, rising to £27.2m and 20.9p in 2021.
| CLIPPER LOGISTICS (CLG) | ||||
| ORD PRICE: | 300p | MARKET VALUE: | £ 305m | |
| TOUCH: | 293-300p | 12-MONTH HIGH: | 315p | LOW: 193p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 24p* | NET DEBT: | £64.4m** | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 228 | 9.3 | 7.2 | 3.2 |
| 2015 | 255 | 10.4 | 8.0 | 3.5 |
| % change | +12 | +12 | +11 | +9 |
| Ex-div: | 12 Dec | |||
| Payment: | 06 Jan | |||
| *Includes intangible assets of £39.6m or 39p a share. **Excludes £183m in lease liabilities | ||||
