Author Topic: CLG.L - Clipper Logistics PLC  (Read 4538 times)

kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #20 on: August 10, 2020, 12:38:49 PM »
It has been on somewhat of a tear recently. Bullish interview with CEO here: Clipper Logistics' agility highlighted by the pandemic
https://www.proactiveinvestors.co.uk/companies/amp/news/926243?__twitter_impression=true


Libs

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Re: CLG.L - Clipper Logistics PLC
« Reply #21 on: August 10, 2020, 09:50:26 PM »
I found out that Burry owned this and googled his name and found this threat.

Anyways, I own clipper too. Fantastic business. Doesn't take capital, e-commerce side of business can grow double digits for a long time. Brick and mortar side probably still MSD growth given more retailers are outsourcing logistics to specialists like Clipper. Even in this current environment, would expect brick-and-mortar side to see some declines (my ballpark is maybe 30% this year) but based on the announcements over the last few weeks, it sounds like they've been able to offset this by managing more of thier large existing customer logistics, including grocery logistics for M&S and John Lewis (Waitrose grocery I think) I believe. Brick and Mortar is about 40% of EBIT if I recall correctly.

You should try looking at ID Logistics. They are closest comparable based in France at 30x P/E which I think reflects the high quality nature of the company! Otherwise, their main competitors would include DHL and XPO. The third-party logistics (3PL) business is probably the crown jewel of XPO's business.
Hi gym, thanks for the input and suggestion re ID Logistics. Didn't know about that one. Nice to finally meet a fellow shareholder!

I agree on everything you wrote - I think this is a fabolous little jewel which was underscored by the PE interest in December for anyone in doubt (I luckily made a good bit of money by trading the buyout news). I think it's probably my best GARP idea, which is also why I was a bit sad to see the Company entertaining a bid, but whatever, didn't go through. Lots of competitors - like XPO, DHL and DSV - I'm sure would love to pick them up at these levels.

They won the NHS contract to supply the UK healthcare system with PPE during Covid19 and have basically proven what a resilent model they have. The economics, as you point out, are fantastic, and the open books contracts which I liked before Covid19 are obviously a real star during these times. I'm surprised there's so little interest on here, but anecdotally that's usually a good thing.

Kab

Nice thread, congrats on the returns so far.
How are they able to so successfully compete with such behemoths as XPO and DHL? Is it simply a matter of more nimble management?
My username is not a political statement.....and I'm too lazy to change it.

kab60

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Re: CLG.L - Clipper Logistics PLC
« Reply #22 on: August 11, 2020, 02:23:45 AM »
Thanks. I can't admit to know how exactly they diffentiate themselves, but it's very much a service business which largely comes down to execution, and if you look at their track record they very much seem to know how to execute (that's the impression one gets when looking at their customers, new customer wins etc). While scale is an advantage because it gives one an opportunity to spread IT costs and systems across a wider base and leverage those costs, a lot of the costs are warehouses and warehouse workers where there's less scale benefits. I also think there's some value to being a pureplay provider (agile, a specific segment getting all the attention etc.) versus say a DHL or XPO where 3rd party logistics is just a minor component. Also, while Clipper is a small - but rapidly growing player - in Continenal Europa, they have some of the biggest ecommerce customers in the UK, so I don't think scale is at all an issue.