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yes not sure what monday was about but the fundamentals seem good and even without lockdowns things were moving to online shopping which makes logistics a strong industry, especially with the IT side too. I had a holding here and managed to top up at 518 which i think is currently the highest price it's ever hit (hopefully will be broken soon). Still a little up overall and if this doesn't get bought out you only have to look at Ocado to see the opportunity for the company so this is one I'm holding long-term while the fundamentals make sense.
A strange week..... was a bit concerned at the drop to 420 immediately after buying a few at 451, then a sudden swing right back up to the 480's! Looking at 600 as the longer term aim, maybe within 12-18 months. Everything seems to be in favour of rapid growth at the moment. Here's hoping ......
yep didn't realise what big influencers we were!
Seems like we have persuaded everyone else ....... :)
Agreed, one of the businesses potentially positively impacted by the situation. Will only boost future prospects IMO
interesting response down a percent today when I would think another month (probably more) lock down is great news for this company.
Jinxed it worse than I thought ......!!!!!!
Yes, the fall doesn't seem to make any sense to me either with every indication of strong growth continuing. I bought a few more this morning at 451p just to send the back down again......
Would hope I can make 10/20% on that over the next 6 months?
Why the recent falls? Have the expected PE bids died a death? Still, in the long-term I’d rather remain holding than be forced to sell. I think Clipper will be a pretty reliable 5% yielder.
https://www.google.co.uk/amp/s/amp.ft.com/content/72cac67e-caaa-4391-ada9-58c1dcd717c5
70% of John Lewis Sales online by 2025. Great for Clipper, who handles all returns, click and collect and large portion of online fulfilment for JL and click and collect to Waitrose.
Well it's going to be an online Christmas
https://buildingproducts.co.uk/demand-uk-logistics-space-hits-record-levels-ecommerce-boom-continues/
Clipper have extended their short term lease of 6months, to 5 years for the 500,000sqft Unit for PPE.
£6.50/7 would be about right.
Hopefully some good news on contracts or bids in the next couple of weeks
I would think that following press rumours, the company has now received several bids from interested parties (CVC, Cinven...). It wouldn't surprise me if a couple of other large cap funds (Bain, Advent etc) throw their hat in the ring - e.g. Advent recently took a position in Hermes logistics.
The next step would be for the board to appoint an M&A advisor to consider next steps and run a process. After being burned quite badly for his failed attempt to take the company private earlier this year with Sun, Parkin will be under the microscope will probably be mindful of the need to run a proper process, but we know that he and the board are at least be open to the idea of a take private.
I think a take private makes sense here - company will likely need to invest heavily in additional capacity to expand which a PE firm can provide. The fact that Sun Capital was a potential buyer (they are a distressed / turnaround firm) suggests that there is a lot of cost reduction potential here - I would guess this is a very labour intensive business with a lot of potential for process optimization and automation.
Clipper is a great Covid hedge for PE firms in that - over the medium term - the worse the environment for bricks and mortar retailers and the more sales will shift online. The structural shifts that would have played out over 10 years have probably accelerated by 5x now with this company very well positioned to benefit.
I think we will be able to achieve £6.50 to £7.00 per share in a properly run auction where bidders have proper access to management and the company, as a result of attractive long term trends and likely substantial cost reduction potential.
Many of their traditional retail clients will probably fold (New Look is a high probability liquidation too). Carnage on high street unlikely to abate
There will be some operational disruption which will likely hit current earnings but the upside is they can probably win new contracts at better terms given medium term supply demand imbalance for their services
Don’t think much will happen to the SP short term
Clipper has got a logistics contract for EWM? Are these likely to the CLG for a few quid if they fold ? And any ideas / impact on SP?
Good point on the LUFC sponsorship. It seems like a bit of a vanity project. As far as I can see, Clipper has no direct consumer-facing role, so the sponsorship seems rather pointless.
1-2 weeks I think
Anyone expecting any announcements?
Yes £6.50 to £7.00 p/s seems like a fair price in light of growth potential and margin expansion. Structural shift within retail has massively accelerated and so this is absolutely a prime asset for PE buyers.
Business should be able to double Sales within 3-4 years - it probably needs some investment to rapidly expand capacity and increase automation which a financial buyer can probably bring to the table. They will also have scope to increase margins by cutting some discretionary spending which should feed into the bid price. e.g. cutting the vanity project funding of Leeds Football Club (zero ROI for a B2B logistics business)
Steve Parkin seems to be an incredibly roguish character - despite being Exec Chairman (!) he tried to buy this business for £3.00 p/s last year with Sun Capital (a 'deep value' PE shop) but the board rightfully rejected the bid - we need to make sure he is not trying to pull his usual tricks again and we are getting a decent offer this time.
Yes a 10% premium from here considering all the growth options in the future seems a poor deal for shareholders. I'd be looking at similar to other takeovers c. 30% or more.
£5.50 would have been a good offer last year, but that was last year. The dynamics and growth potential of this company have changed markedly since then. I reckon £6.50 or no deal. Whatever Parkin wants, he still needs the bulk of IIs behind him to get a private equity sale through. What incentive do IIs have, to sell up, lose a nice little divi earner and forfeit almost certain future growth here?
Seems that one of the bidders (CVC or Cinven) are looking to bid £5.50-per-share according to Daily Mail.
I think this could easily for £6.50-7.00 if we have a proper auction. Steve Parkin clearly open to a takeover given that he teamed up with Sun Capital back in Dec-19.
From the Times 1 Oct 20:
Clipper Logistics shares hit their highest price in more than two years amid further chatter that private equity houses are eyeing up a bid for the delivery group.
There have been a few murmurs involving Clipper in the City in recent weeks and the speculation ratcheted up a level yesterday as Bloomberg reported that several buyout funds had cast their eye over the company.
Cinven, which owns Kurt Geiger, the shoe brand, and CVC Capital Partners, the owner of Breitling watches, are said to be among those interested, although it is understood that Clipper is yet to be approached.
It is not the first time that potential suitors have run the rule over the Leeds-based company, which delivers parcels on behalf of John Lewis, Asos and others. Last year, Steve Parkin, the executive chairman who set up Clipper Logistics in 1992 with a single van, teamed up with Sun Capital, a US private equity firm, to explore a possible bid to take it private although that interest ended up going nowhere.
Mr Parkin and co were said to be weighing up a £300 million deal although any bidder would have to stump up significantly more now. The stock closed up 1.6 per cent at 487½p yesterday, valuing the business at almost £500 million. It has rallied 79 per cent this year thanks to the boom in online shopping during lockdown while it also won a government contract to distribute PPE.
I wonder if Steve Parkin has been soliciting this latest round of private equity interest (as he did with Sun Capital last year) or whether the PE firms are making all the running this time. In any case, if it is not to be turned down by Clipper’s IIs (as appeared to happen last time) any PE offer will have to be substantially higher than the reported £300M last year. Hopefully we will see a bidding war this time - and an offer that is hard to refuse.
https://www.retailgazette.co.uk/blog/2020/10/halfords-remains-cautious-despite-raising-profit-guidance/
Halford Cycling Sales up 46%...good news for Clipper & the Halfords Daventry facility.
https://www.365retail.co.uk/ebay-extends-partnership-with-nhs-and-dhsc-to-significantly-scale-up-supply-of-free-ppe-to-health-and-social-care-organisations/
PPE out of Clipper DC’s will be increasing to circa. 200million units a week.
https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2020/boohoo-group-plc-interim-results-presentation-fy21.pdf
Boohoo/PLT flying. Plenty of Sheffield DC investment in automation & mezzanine flooring capable of handling 900Million sales.