Shares in distribution logistics firm Clipper Logistics (CLG) rose 3% to a new 12-month high of 604p after it reported a sharp increase in revenues in the last two months of 2020.
Turnover in November and December was up 50% on the previous year thanks to ‘strong growth in both e-commerce related activities and non e-fulfilment services’.
DELIVERING THE GOODS
Clipper has been instrumental in supplying PPE goods, and during the period it marked up its billionth item ordered online through the portal established last spring with e-commerce giant eBay.
While this increase in revenue ‘will not necessarily have a proportionate impact on operating profit’, the overall increase in activity ‘gives management an excellent level of confidence in the year ahead’ according to today’s statement.
Just a month ago Clipper reported an increase of 20% in revenues and a 53% increase in earnings before interest and tax (EBIT) for the first half to the end of October, and said it expected full year earnings to be ‘materially ahead’ of its previous expectations.
That pushed the shares through the 500p level, while today’s move above 600p means the shares are up 20% in just four weeks.
FORECASTS ON HOLD, FOR NOW
Numis analyst Steve Woolf has left his forecasts for Clipper unchanged this morning, after upgrading his current-year earnings estimate by 10% after the half-year results.
Given the shares’ performance it may take a steady flow of good news to generate further gains. ‘We believe that a combination of high demand, execution, and new business opportunities could deliver further value enhancement over the medium term’, says Woolf.
READ MORE ABOUT CLIPPER HERE
