Clipper Logistics PLC (LSE:CLG, FRA:3UC) is “a top-class player”, according to a City broker, after posting a strong set of preliminary results and an optimistic outlook statement.
House broker Shore Capital noted that the distribution group has secured several new contract wins or extensions recently, with John Lewis, Life Style Sports and ASOS as well as starting new operations with Mountain Warehouse and JD Sports.
READ: Clipper Logistics makes strong start to new financial year
The firm has also opened a new facility for FarFetch in the Netherlands.
Analysts at broker Peel Hunt said that the Clicklink, the Click & Collect joint venture with John Lewis, saw record volumes, with nearly 40 retailers on the network.
E-fulfilment volumes were high as a result of the permanent structural shift to online retail during the pandemic, while technical services saw significant increases in activity from Amazon, Panasonic, Vestel and Nintendo.
“A smart business won’t limit itself to a finite pool of clients, hence why Clipper has been pushing hard to expand beyond retail. The latest financial results show good progress in the healthcare industry. Equally, they also show geographical expansion beyond the UK with progress in mainland Europe,” AJ Bell’s Danni Hewson commented.
“There are a lot of moving parts to Clipper as its operations are not simply about putting stuff on a truck to deliver to the customer, and then taking items back that aren’t wanted. The hallmarks of a strong business include the ability to run an efficient business, capture opportunities to make more money from clients, and keep moving forward with new initiatives. Clipper seems to have all these traits.”
Shares were changing hands at 813.5p on Wednesday at noon, having nearly doubled over the past 12 months.