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At this price it’s an absolute bargain given the global growth potential, I believe the senior management know how strong the business is and has further good news in the tank given they haven’t put a date on the results . My thought following the Farfetch JV was an acquisition in Europe or further afield in order to support that contract, however even more good news on strengthening the electronic repairs proposition with stronger margins! I think they are going to surprise us with the results over the next few weeks illustrating the core organic strength of the business and growth through new contracts.
Once we get out of this covid uncertainty I think this will sit comfortably above £10+ as I’m sure they will certainly exceed broker forecasts. I also read an article on the Wippet acquisition recently & they seem to be going from strength to strength onboarding healthcare suppliers on a daily basis. Hopefully more acquisitions to come !
Clipper I feel are going to smash all forecasts…..New John Lewis contract at Bardon, New Boohoo contract (Sheffield 336), ASOS Poznan returns facility extended, River Island whole operation outsourced to Clipper recently started, JD Sports facility in Leeds just opened…..further extension of the Farfetch contract, check out DHG’s website the landlords for the Venray facility, Clipper have taken another 450,000sqft on top of the initial 300,000sqft.
Wippet will also be a game changer as well with all the experience they are getting from the PPE contracts and just look at the amount they are hiring for that Daventry facility…..Madness!
£10+ by Christmas !
https://www.google.co.uk/amp/s/www.thestar.co.uk/business/fashion-giant-boohoo-arrives-in-sheffield-with-hundreds-of-new-jobs-on-offer-3274672%3famp&fbclid=IwAR2gzIJJDCmZgz2H3jtjhVvRiCcknHFDlyVGAkjaMfKa60ltvTRuIRKYNes
Clipper look to have secured another 300,000sqft worth of space next to their PLT facility.
Clipper I believe is going to fly and surpass 1Billion sooner rather than later. Wippet is going to make Clipper a real competitor to Amazon, as they must have seen a real gap in the market through all the PPE work.
I think we shall see a European/American acquisition soon too, they can’t drop that in the trading update and not be fishing.
£10 within a year I’d say.
That’s a big order!!!...89 new trucks....hopefully sp £8.50 by Christmas
https://www.iveco.com/uk/press-room/release/Pages/Clipper-Logistics-continues-IVECO-relationship-with-an-order-of-26-IVECO-S-WAY-6x2-tractors-and-63-Eurocargo-18-tonne-rigid.aspx
https://www.google.co.uk/amp/s/amp.ft.com/content/16dbb10a-767c-4901-bd2e-32f0c8935169
Hopefully we exceed the markets expectations further & Mannix lands a European acquisition as the article mentions.
Numis upgrades Target Price to £5.80
https://www.sharesmagazine.co.uk/news/shares/online-spending-boom-stokes-10-earnings-upgrade-for-clipper-logistics
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.
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
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.
https://www.gov.uk/government/news/huge-increase-in-uk-personal-protective-equipment-production
Good news for Clipper and the PPE distribution contract.
Boohoo trading update tomorrow, PLT hopefully will be firing on all cylinders.
Lots of social media activity from Clipper staff, stating they’ve been at peak levels for 6months and expect a peak peak in November.
Yodel looking to hire thousands of new staff, Clipper work along side Yodel with transportation so hopefully we see some run through activity.
Come on £5+!!!
Inditex Online Sales up 74%, Waitrose closing a few stores but offering staff jobs John Lewis E-Commerce channels (great for clipper), hopefully some potential materialisation of the 50Million weighted pipeline before Trading update in December, Clipper advertising tonnes of new job roles on their website & LinkedIn, Very Group sales hitting 2Bn, PrettyLittleThing will be firing on all cylinders & they are going into homeware soon, Arcadia contract is off and running from Tony Mannix’s pro active interview & others will be joining Clippers shared transportation initiative, Tesco & Morrison’s hiring Thousands of full time logistics positions hopefully Clipper are involved after they assisted through Covid & further Online penetration as the press try to scare us with negative Covid headlines, potentially more PE interest as I’m sure all the vultures will be looking at Clipper closely with its growth potential, ASOS stating they think returns will have gone back to normal post lockdown, PPE contract growing, Halfords bike sales and associates services rocketing through Lockdown where Clipper assist.
Clipper is firing on all cylinders. I said in my previous message we’ll see £4.50 in weeks and £5 by Christmas I think we shall see that a lot sooner and £5 - £5.30 by Christmas.
Yes I’d assume so, they are usually sometime in August. At the current SP it’s still a bargain. Hopefully Steve Parkin has something up his sleeve & will be holding out on some further good news in order to bump up the SP & then sell the business at £5+. I’m sure he will want to get well above the mid £4 he sold at a few years ago in a placing. Hopefully the results will be announced when the new Arcadia contract has been completed & hopefully it includes Click and collect & expands into E-fulfilment.
Snippet from Steve Parkin’s interview from a horse racing article.
EC: What about the business, Clipper Logistics? I read on your website “it’s all about getting the job done no matter how complex.” I guess things can’t get more complex than they have been for the last few months?
SP: I woke up one morning to the news that we were going into lockdown - the whole world was turning off effectively. That gave us many challenges within our business because we are primarily in the retail space. Fortunately, after a brief hiatus to start with, as a lot our business is online, we started to see huge spikes in online shopping which basically meant Black Friday volumes every day for the last month.
From adversity we actually switched with our online business to record volumes. We were also approached by the Ministry of Defence back at the end of March asking if we could help with the distribution of PPE to hospitals. Within four days of getting the phone call we had a distribution network set up with 100 vehicles and 700 staff and now about 1.2 million square feet of warehousing so within eight weeks of not even working with the NHS, we have now been at the forefront of the PPE deliveries to hospitals and I’m pleased to say it’s been a huge success which has been highlighted by the government. So, from adversity, we seem to be doing very well.
We don’t know what’s at the end of this when things get back to normal but at the moment we’ve been very successful and are confident moving forward.
As you can imagine it’s a political hot-potato, there’s been an awful lot of air time about the lack of PPE into the front line, so we felt we were doing a service for the country, not only our own business. We’re delighted with what we’ve done. We employ 10,000 people and the furloughing of staff has actually been very small. The only ones furloughed are the ones who work in geographical areas where it’s impossible to get them to work.
If you look, our actual staffing levels were 20% up on normal times so we’re bucking the trend and recruiting through this process.
https://wbj.pl/p3-poznan-tailored-to-e-commerce/post/127089
One would assume that Clipper have big European ambitions given they also recently promoted the Van Hoof to Group Deputy CEO, who ran the European Operations.
https://www.thetimes.co.uk/edition/business/clipper-sails-ahead-on-favourable-wind-from-online-returns-9l6ghzj5z
The Times have reported that other private equity firms have stated their interest in Clipper since the takeover approach was made public.
Was this as a result of the Wincanton/Eddie Stobart potential deal? seems coincidental that all this M&A activity is occuring at the same time. Hopefully, this whole P.E. deal is a ploy by Mr.Parkin and that he is in fact putting up an unofficial for sale sign out to prospective bidders like your DSV's and thus beginning a bit of a dutch auction . I can't see many being happy with £3.
I've been in since £1.50, CLG truly are a great company. Your spot on with your comments may i also add:
1) There maybe potential for a contract for the larger Boohoo group after this successful PLT move from Burnley to Sheffield. Boohoo are also looking at a potential US distribution centre, that could be great if Clipper could make a solid jump over the pond.
2) Clipper are about to open a new fulfilment centre in Poland for a further contract with Westwing, who recently floated and are about to boom! They have also expressed interest for further space in the second park of the P3 posnan park in Poland, so a strong european pipeline! https://www.p3parks.com/p3-live/3264-27/final-column-raised-on-clipper-s-latest-building-at-poland-s-p3-poznan-park/
3) Zara have selected Clipper to fulfil their retail stores nationally also i'm guessing, from what can be seen from Clippers mezzanine project managers and from the recent results presentation. https://www.kampcl.com/projects .
4) Another 300.000 sqft Halfords fulfilment centre for their massively growing sector of Bikes.
5) New Look - look to be recovering somewhat from their recent results.
6) Ron Series left immediately from Clipper today (indepednat director) - he's the chairman of DX group, so im guessing the reason he only just left today must be because of some new overlapping contract with them potentially, i just read DX group have a huge IKEA contract...but who knows time will tell!
7) Steve Parkin seems to be a maverick and a real driving force behind this business and i've been following his horses and other business endeavours and seems to have lots of gas left in the tank.
8) Clipper cleared up at the supply chain excellence awards last night also with their partnership with Superdry.
9) They have exapnded the electronics returns across to Germany for Amazon! & recent contract with Vestel.
10) It seems as if after a lot of research 95% of their contracts from their presentation https://www.clippergroup.co.uk/wp-content/uploads/2018/08/2018-Full-Year-Results-Presentation.pdf.... are growing organically and smashing it. Even m&s with increased online sales.
11) pep and co and edinburgh wollen mill also rapidly increasing from recent new articles in drapers.
I hope an acquisition in Europe is next, Steve Parkin said he wants a company with 1billion in value in his Times article, so i'm sticking around for that fingers crossed ! Good luck to all, the SP looks like great value currently.