Logistics and e-fulfilment services provider Clipper Logistics PLC (LON: CLG) posted good financial progress during the six month period ended 31 October 2019.
The Group’s revenue rose 11.7% year-on-year to £254.6 million. This led a 13.5% jump in reported EBIT, up to £12.1 million, alongside a 9.5% growth in profit before tax, to £10.1 million.
During the six month period, the Company also reported a “Significant European growth trajectory”, with 111.6% revenue growth in Poland and 33.4% growth in Germany. It also announced new automation programmes with Superdry (LON: SDRY), alongside new operations with Hope & Ivy, Simba Sleep, SLG, Amara, Shop Direct and a new operation providing services to the M&S (LON: MKS) National Distribution Centres.
The Company’s shareholders saw similar progress, with its EPS up 8.3% to 7.8p, while its interim dividend jumped 9.4% to 3.5p per share.
Elsewhere, other positive financial updates came from AJ Bell PLC (LON: AJB) and Albion Enterprise VCT PLC (LON: AAEV).
Clipper Logistics comments
Responding to the update, Steve Parkin, Executive Chairman, stated,
“The Group continues to see impressive revenue and EBIT performance in the first six months of the year, largely driven by the particularly strong growth in e-fulfilment and returns management and an improving contribution from our Clicklink Joint Venture.”
“A number of new operations have commenced in the period with major customers including Hope & Ivy, Simba Sleep, SLG, Shop Direct and M&S. Our business continues to perform well in Europe, with revenue growth in Poland of 111.6% and Germany of 33.4%. This is supported by a solid new business pipeline in the UK where we continue to offer value-add e-commerce and logistics services, including automation programmes, as we trial robotic technologies with a number of customers.”
“As retailers increasingly collaborate to minimise their route-to-market costs, Clipper, given its presence and infrastructure in retail logistics, is ideally placed to facilitate consolidation on behalf of retailers.”
“Trading has continued to be positive post-period end, with the key Black Friday trading weekend seeing record daily volumes in certain sites, and we expect full year earnings to be broadly in line with the board’s expectations. Notwithstanding the difficulties facing the UK high street and the uncertainties of the UK political environment in the current year, Clipper remains positive about the longer-term outlook and believe the Group is well positioned to achieve further growth in both the UK and internationally.”
Investor notes
The Company’s shares dipped 1.17% or 3.50p, to 296.50p per share 05/12/19 12:02 GMT. Analysts from Berenberg reiterated their ‘Buy’ stance on Clipper stock. The Group’s p/e ratio is 22.73, their dividend yield is 3.27%.
