MIDAS SHARE TIPS UPDATE: Investors place their orders for logistics tip Clipper
Clipper Logistics is a flotation success story. Having listed on the stock market in May 2014 at 100p, the group, rather like Motorpoint, made strong early progress and, when Midas recommended the shares three months later, the price had already risen to 140p. Since then, Clipper has continued to shine, more than doubling in price to 285p.
The stock is unlikely to keep up that momentum in the short term, but the company is well positioned to expand and develop over the next decade, so the shares should provide steady, long-term growth.
Clipper helps retailers to distribute their wares around the country. Originally, this was all about delivering goods from depots to stores – and a proportion of the company’s earnings still come from doing just that.
Challenge: Clipper works with retailer John Lewis
Over time, however, Clipper has become involved in various aspects of retail distribution, putting clothes on hangers, pressing them and adding size labels, for example, or packaging imported goods before they are transported to stores.
Now, the fastest growing part of the business centres on working with well-known brands such as John Lewis, Asos and SuperGroup to handle online sales. E-commerce is extremely popular but it can be challenging for retailers. Customers are increasingly impatient, expecting goods to be delivered within one or two days and expecting returns to be processed within a similar timeframe.
This is where Clipper comes into its own, using sophisticated software, a network of depots and warehouses and thousands of staff to make sure goods get to shoppers fast and returns get turned round speedily.
The company has been working with retailers on ‘click & collect’ too, where customers ordering online pick up goods from stores rather than have them delivered to their homes.
Last week, chief executive Tony Mannix revealed that Clipper is collaborating with John Lewis to make its click & collect offer faster and more efficient. A new distribution centre in Northampton is being equipped with all the necessary facilities for rapid click & collect and return services. John Lewis is the first tenant but other retailers are expected to come on board over time.
Clipper’s financial year runs to April 30 and brokers expect a 25 per cent rise in profits to £13.3 million when results are announced in July. The dividend is also expected to rise by 25 per cent to 6p, with further good growth forecast for the current year.
Midas: Clipper shares have come a long way and investors may want to bank some profits. But the company is doing well, Mannix and his team are driven and prospects are good. The shares are a strong hold. Investors with a long-term view could also find value in the stock.
Most watched Money videos
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Mercedes has finally unveiled its new electric G-Class
- How to invest to beat tax raids and make more of your money
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Mini unveil an electrified version of their popular Countryman
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- How to invest for income and growth: SAINTS' James Dow
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Hipgnosis Songs Fund agrees £1.3bn takeover by Blackstone
- Elementis shareholder calls for boss Paul Waterman to quit
- My dementia sufferer mother has been paying my brother...
- BUSINESS LIVE: FTSE 100 hits another peak; Ocado boss...
- Online state pension top-ups FINALLY launch after This is...
- S4 Capital board shake-up as founding member retires...
- Petrofac delays results amid warnings it will miss bond...
- The soaraway UK funds that even beat the mighty Warren...
- Royal Mail must not sell out to Czech Sphinx Daniel...
- Britain must scrap 'double taxation' blighting popular...
- Ocado boss Tim Steiner faces a shareholder revolt over...
- Tesla boss Elon Musk makes surprise visit to Beijing as...
- CITY WHISPERS: City PR man Neil Bennett cries fowl after...
- Intermediate Capital Group snaps up leading legal...
- Coventry Building Society swimming with 'sharks' as it...
- Is it time for Dyson to feel scared? SharkNinja wants to...
- Is the UK stock market finally due its moment in the sun?...
- When will Gucci get its house in order? Fashion giant...