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Clipper Logistics - recent contract wins and strong new business pipeline

Clipper Logistics - recent contract wins and strong new business pipeline

Thu 6 Dec 2018 08:33 by ukcitymedia.co.uk about : trading updates - 0 Comments - 3816 words


Clipper Logistics plc ("Clipper", "the Group", or "the Company"), a leading provider of value-added logistics solutions and e-fulfilment and returns management services to the retail sector, is pleased to announce its unaudited results for the six months ended 31 October 2018 ("H1 FY19").

 

 Financial Highlights

 

·             

Group revenue up 14.1% to £227.9 million (six months ended 31 October 2017 ("H1 FY18"): £199.7 million).

 

·             

Group EBIT 16.1% ahead at £10.7 million (H1 FY18: £9.2 million), as a result of strong performance in e-fulfilment and returns management in particular. By segment:

 

 

o  

 

E-fulfilment and returns management services EBIT up 17.1% to £6.2 million (H1 FY18: £5.3 million), including £(0.7) million impact from Clicklink (H1 FY18: £(0.7) million). Post period-end, Clicklink rate enhancements agreed with key customers and onboarding of secured new customers will enhance profitability in the second half and beyond;

 

 

o  

 

Non e-fulfilment logistics EBIT up 16.4% to £7.3 million (H1 FY18: £6.3 million), including property-related advisory fees of £2.8 million (H1 FY18: £nil). EBIT excluding property-related advisory fees has reduced, due in particular to lower activity levels on a closed-book contract with a key retailer as it re-shapes and restructures its network, together with lower tobacco activity. Recent contract wins and increased tobacco activity are expected to deliver earnings growth in the second half; and

 

 

o  

 

Commercial vehicles EBIT down 36.9% to £0.9 million (H1 FY18: £1.4 million) due to lower sales of new vehicles.

 

·             

Group Profit Before Tax and Amortisation1 up 17.3% to £9.9 million (H1 FY18: £8.4 million).

 

·             

Group Profit Before Tax (PBT) up 16.9% to £9.3 million (H1 FY18: £7.9 million).

 

·             

Cash generated from operations of £10.1 million (H1 FY18: £12.6 million).

 

·             

Earnings per share up 14.3% to 7.2 pence (H1 FY18: 6.3 pence).

 

·             

Interim dividend increased by 14.3% to 3.2 pence per share (H1 FY18: 2.8 pence).

 

 

1 As defined in Alternative Performance Measures section

 

 

Operational Highlights

 

·             

Commencement of a new e-fulfilment operation for Pretty Little Thing in Sheffield. Having launched in July 2018, the site is now fully operational.

 

·             

Continuing organic growth on e-fulfilment operations with longstanding customers including Asda, ASOS and Wilko, as well as growth on recent contract wins including Browns and Silkfred.

 

·             

Progressed a number of automation projects across the estate, improving efficiency and productivity.

 

·             

New contracts in non e-fulfilment, including Sports Direct and Halfords, together with organic growth on other contracts, provide significant earnings momentum into the second half and beyond.

 

·             

Seasonality, rate enhancements reflecting the value-added service proposition, and the introduction of further shared use activity within Clicklink provide earnings momentum as we enter the second half.

 

·             

European e-fulfilment and returns management operations continue to grow strongly.

 

·             

Delivered record volume over Black Friday-Cyber Monday weekend for a number of key customers.

 

·             

Introduced new cutting-edge vehicles and innovative trailer designs to the fleet which will reduce Group carbon emissions significantly, increase the range between refuelling and increase carrying capacity. Together, these developments are expected to reduce trunking costs by 20%.

 

·             

Opened a new facility at Crick, Northamptonshire, to accommodate the extended Halfords contract, and a new facility in PoznaƄ, Poland, to accommodate the extended Westwing contract.

 

 

 

Commenting on the results, Steve Parkin, Executive Chairman of Clipper, said:

"The Group continues to be exceptionally well-placed to benefit from the continuing migration to online retailing and the increasing propensity for consumers to choose click-and-collect services when placing orders online.

 

Our recent contract wins, including Sports Direct and an extended relationship with Halfords, provide significant earnings momentum into the second half of the current financial year and beyond.

 

We are excited about the future growth of our European operations, as the contracts with s.Oliver, ASOS and Westwing evolve.

 

Clicklink is now well-positioned to enhance Group earnings, with new clients being introduced to the network, and enhanced rates having been agreed with key customers as the benefits of using the service become evident to retailers.

 

We have a strong new business pipeline and look forward to continuing to update shareholders as we convert these opportunities."



These articles are usually news summaries / highlights and dont always include all financial news updates. Check at company website INVESTORS INFORMATION for full published results.


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