23 February 2018

Clipper Logistics

Clipper Logistics (Clipper) run a predominantly UK based business focused on returns, delivery, packaging, and click and collect services

Group 10Created with Sketch.
Price
£4.12
Group 11Created with Sketch.
52 Week High-Low
£4.94—£3.35
Page 1Created with Sketch.
Net Yield
1.90%
Group 12Created with Sketch.
Hist / Pros Per
30.5—25.7
Page 1Created with Sketch.
Equity Market Cap
£410

Clipper Logistics (Clipper) run a predominantly UK based business focused on returns, delivery, packaging, and click and collect services. When an item is ordered online from one of a number of retailers, including John Lewis, ASOS and Marks & Spencer, Clipper are the people running the show.

Currently 40% of items that are bought online are returned. Amazon and ASOS are launching a new scheme where you pay for what you don’t return on certain items; it could be that this number rises further and Clipper picks this business up.

In June 2017 Clipper announced the acquisition of Repairtech who predominantly deal with high-end electronics. The aim is complete control over the returns management for their retailers. When goods are returned due to damage, Clipper can now repair and return to stores more efficiently.

Along with offering their services, Clipper also own a large warehouse estate which is rented out to companies signed up with them. Interestingly, management say that retail companies will not share space with a competitor if they think it would benefit them, but are happy to rent off Clipper in a warehouse with those same companies occupying the space. Their inability to play nicely is music to Clipper’s ears.


Also in this issue

The simplest definition of beta is that it is a measure of risk. Whilst I won’t derive the mathematics from first principles, it is worth saying that it is calculated by taking the correlation of an…

Well, time has moved on and, whilst I have not joined the Labour Party, I am certainly keen to understand its policies and where they are heading. In particular whether the Labour Party is painfully…

We have seen excessive returns from stock markets over the last few years comfortably above long term returns over a twenty year period, which have averaged nearer 6%-7%.