The acceleration towards online retail boosted demand for Clipper Logistics’ (CLG) services in 2020, pushing revenue past the £0.5bn-mark for the first time.
Indeed, operating profit climbed by more than a quarter in e-fulfilment and returns management services. The growth was partly led by new business with clients such as Shop Direct, N Brown and Simba Sleep - the impact of which will not be fully realised until the end of the 2021 financial year.
However, non e-fulfilment revenues, which accounted for just over a quarter of the group total, dipped 1 per cent as various contracts expired in the period. Clicklink, its joint venture with John Lewis in the ‘click and collect’ market, contributed a loss of £0.2m as it suffered from the closure of non-essential retail stores.
Meanwhile, central logistics overhead costs ramped up by more than a tenth, excluding non-underlying factors. Management said that it had funneled these funds into investment in its operational support and back office functions.
Looking ahead, the wider economic backdrop is shaky to say the least - but Clipper believes it will comfortably exceed market expectations for its current financial year. Numis forecasts pre-tax profits of £26.5m and EPS of 20.4p in 2021, rising to £30.3m and 22.9p the following year.
| CLIPPER LOGISTICS (CLG) | ||||
| ORD PRICE: | 396p | MARKET VALUE: | £ 403m | |
| TOUCH: | 392-396p | 12-MONTH HIGH: | 385p | LOW: 135p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 29p* | NET DEBT: | £219m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 290 | 13.1 | 10.3 | 6.00 |
| 2017 | 340 | 16.1 | 12.5 | 7.20 |
| 2018 | 400 | 18.0 | 14.2 | 8.40 |
| 2019 | 460 | 16.9 | 13.2 | 9.70 |
| 2020 | 501 | 20.1 | 15.9 | 9.70 |
| % change | +9 | +19 | +20 | - |
| Ex-div: | 10 Sep | |||
| Payment: | 05 Oct | |||
| *Includes intangible assets of £37.9m or 37 p a share | ||||
