Author Topic: CLG.L - Clipper Logistics PLC  (Read 9656 times)

kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #30 on: December 03, 2020, 12:32:25 AM »
Clipper doing its thing and Clicklink turned profitable - H1 results out

Commenting on the results, Steve Parkin, Executive Chairman of Clipper, said:
“The Group has successfully chartered the uncertainty and disruption caused by the pandemic to deliver impressive revenue
growth of 19.8% and underlying EBIT growth of 54.3%. The Group benefited directly from the structural shift and acceleration of
online retail such that our e-fulfilment and returns management division saw underlying EBIT growth of 63.3% which included a
positive contribution from our Clicklink joint venture.

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One interesting nugget from their presentation is that they're looking at doing bolt-on acquisitions in mainland Europe & North America. NA could be huge potentially. ID Logistics already bought their way into NA and recently commented that they saw a lot of synergies from systems etc. In other news XPO Logistics just announced they'll spinoff their contract logistics business to surface value. These businesses are coveted gems, and I really hope they intend to stay public. But I can see why PE could be attractive since they could get more firepower for M&A by levering up, and they could slash their silly dividend which they just increased.



« Last Edit: December 03, 2020, 01:38:36 AM by kab60 »


jefke

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Re: CLG.L - Clipper Logistics PLC
« Reply #31 on: January 06, 2021, 07:20:58 AM »
Trading update for Black Friday & Christmas: https://otp.tools.investis.com/clients/uk/clipper/rns/regulatory-story.aspx?cid=834&newsid=1442067

...experienced unprecedented levels of activity in its logistics operations in both the UK and continental Europe over the Black Friday and Christmas periods.

....for the months of November and December, revenues in its logistics business were 50.0% higher than in the corresponding period of the prior year, with strong growth in both e-commerce related activities and non e-fulfilment services.

Whilst additional revenue will not necessarily have a proportionate impact on operating profit given Clipper's contract mechanisms, this level of activity gives Management an excellent level of confidence in the year ahead.

Steve Parkin, Executive Chairman, said: "Our strategic positioning in supporting the online trading of retailers both in the UK and Europe places us in a strong position to continue to deliver excellent returns to our shareholders. I am immensely proud of the ability of our teams across the business to continue to support our customers' exceptional growth. The strength of both our underlying markets and our new business activity provide us with an excellent level of confidence in the year ahead."


kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #32 on: January 06, 2021, 10:46:56 AM »
No idea what market thinks of that update, but 50 revenue growth is pretty good... Anyway, what made it an easy bet before and during the start of the pandemic is their open book contracts, which means there is not a lot of operating leverage. So you give up some upside for an extremely resilent model with no volume risk. It is also difficult to figure out how much is a onetime boost from the government contract. Sold one tenth of my position but still have a 13 pct stake. There has been a lot of multiple expansion, which I don't really like, but it's a pretty great business, TAM is huge, there is optionality in Europe and possibly the states, and management is just executing. Will try and hold on, but it's difficult for me. Usually am pretty quick to flip, when market falls in love with one of my ugly ducklings.


kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #33 on: January 15, 2021, 12:34:37 AM »
Chairman Parker sold a 10 pct. stake in the Company somewhat below market. I think it's pretty clear that he wants liquidity (duh), and I guess it decreases the risk/chance of this getting sold to PE or an industrial buyer, which I like. But it's also pretty clear that he wants out - or wants a really, really big house - which I don't like. I heard from some institutional investors that they've stayed away from Clipper due to the Chairman - there has been some related party transactions, that some people don't like (me neither but I don't think it's material). I think the big opportunity here is Clipper expanding via M&A, and even though Parker still owns 15 pct., I'd clearly prefer a fully-invested Chairman.

jefke

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Re: CLG.L - Clipper Logistics PLC
« Reply #34 on: January 15, 2021, 01:18:30 AM »
Yeah, you can put in effort to find an excuse for why maybe it's not a big deal.
But hard to find an optimistic explanation.

PE rumors meant there was a small chance you would get taken out of your position at a premium. But with Parker selling a 10% stake at 565p (he owned about 25% iirc - yesterday's close was 588p), that's not going to happen.

I stumbled upon Clipper thanks to this thread. Bought in at April 2020. Mostly let the position grow, with some occasional small trims. Now I'm thinking of selling more to reduce my position size
« Last Edit: January 15, 2021, 01:20:03 AM by jefke »

kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #35 on: January 15, 2021, 01:53:14 AM »
It has been clear that Parker was a willing seller at the right price for a long time, otherwise they wouldn't have entained a PE firm shortly after I started the thread. Back then the price was closer to 200. Then you recently had the CVC rumours, when the stock was closer to 400 (if I recall correctly). So even though CVC might've offered a premium, I don't think you'd get close to 600.

I'm hoping this thing stays public, so in that regard I'm happy that Parker now has gotten a ton of cash at what looks like a fair price. But if they embark on an international expansion, which I'm really hoping they will, I'd really like him to stay onboard and not sell another chunk. It's not like they have a lot of M&A experience, and he seems to have been central in what they have done so far.

It's pure speculation, but he states in the press release that he intends to stay as a longtime shareholder. He almost got as much out of Clipper at close to 600 as he would've gotten less than two years ago, when they entertained a bid around 300.

As I mentioned, I'd really like them to pursue M&A opportunities in Europe and the US, and perhaps he'll be more willing to take risk after he's taken a large sum of money off the table. Pure speculation, but we'll see.

And 'grats on the fine return so far! I pay 42 pct. taxes, and this has the hallmarks of a longtime compounder, so I'm letting it ride, but it was definately an easier buy and hold at 200 than close to 600.
« Last Edit: January 15, 2021, 03:12:42 AM by kab60 »

kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #36 on: January 28, 2021, 09:09:51 AM »
Got a new contract for mainland Europe the other day which is quiet significant - adding 30 pct. organic growth to their European operations when it is up and running and entering benelux. There's a huge amount of space for them to go after.

https://www.clippergroup.co.uk/new-e-commerce-operation-for-farfetch-extends-clippers-european-footprint/

lipper Logistics plc (“Clipper” or the “Group”), a leading provider of value-added logistics solutions, e-fulfilment and returns management services, is pleased to announce that it has entered into an agreement with Farfetch to provide pan-European e-fulfilment and returns management services from a new facility in Venray, Netherlands.

Farfetch is the leading global platform for the luxury fashion industry, which sells products from over 1,300 luxury boutiques and brands from around the world on its marketplace. Clipper will be providing e-fulfilment and returns management services from a new site in the Netherlands and will support all of Farfetch’s European activities from that facility.

The new contract will see operations commence in April 2021 and is for an initial term of five years. Clipper anticipates that it will employ 600 personnel at the site, and the facility will have a stockholding capacity of over 2 million units of high-end apparel.

kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #37 on: February 25, 2021, 01:01:29 AM »
Good news today - couple of interesting points:

Two Major New Contract Wins

Outperformance expected in FY22

Clipper Logistics plc ("Clipper", "the Group" or the "Company"), a leading provider of value-added logistics solutions, e-fulfilment and returns management services to the retail sector, is pleased to announce two major new contract wins with River Island and Mountain Warehouse. Together, these represent a significant step change in activity levels and will enhance earnings for the next financial year which commences on 1 May 2021.

...

Marcus Ward, Chief Operating and Financial Officer of Mountain Warehouse commented: "We have been impressed with Clipper's innovative thinking and track record. The engagement from Clipper's senior team from an early stage and Clipper's proven ability to meet our high standards, has given us with the confidence to enter into a long term partnership. We are really excited to get started."

Together, these two new contracts will increase revenue by over £40 million on a full-year basis, and will be immediately earnings-enhancing from go-live. As a result, the Group expects to outperform current market expectations in the year to 30 April 2022 and beyond.

https://www.londonstockexchange.com/news-article/CLG/two-major-new-contract-wins/14877860