A market leader in retail logistics Interim Results Presentation 1 December Logistics evolved: Agility and Ability

Transcription

1 A market leader in retail lgistics 2016 Interim Results Presentatin 1 December 2016 Lgistics evlved: Agility and Ability

2 Disclaimer This presentatin includes statements that are, r may be deemed t be, frward-lking statements. These frwardlking statements can be identified by the use f frward-lking terminlgy, including the terms believe, estimates, plans, prjects, anticipates, expects, intends, may, will, r shuld r, in each case, their negative r ther variatins r cmparable terminlgy. These frward-lking statements include matters that are nt histrical facts and include statements regarding the Cmpany s intentins, beliefs r current expectatins. Any frward-lking statements in this presentatin reflect the Cmpany s current expectatins and prjectins abut future events. By their nature, frward-lking statements invlve a number f risks, uncertainties and assumptins that culd cause actual results r events t differ materially frm thse expressed r implied by the frward-lking statements. These risks, uncertainties and assumptins culd adversely affect the utcme and financial effects f the plans and events described herein. Frward-lking statements cntained in this presentatin regarding past trends r activities shuld nt be taken as a representatin that such trends r activities will cntinue in the future. Yu shuld nt place undue reliance n frward-lking statements, which speak nly as f the date f this presentatin. N representatins r warranties are made as t the accuracy f such statements, estimates r prjectins. Please nte that the Directrs f the Cmpany are, in making this presentatin, nt seeking t encurage sharehlders t either buy r sell shares in the Cmpany. Sharehlders in any dubt abut what actin t take are recmmended t seek financial advice frm an independent financial advisr authrised by the Financial Services and Markets Act

3 Agenda 1 Highlights Steve Parkin 2 Financial review David Hdkin 3 Operatinal review Tny Mannix 4 Summary and Q&A Steve Parkin 3

4 1 Highlights

5 Highlights Financial Grup revenue grwth f 16.5% t 164.9m (2015: 141.5m), driven by strng grwth in all divisins Grup EBIT grwth f 23.2% t 7.6m (2015: 6.2m): e-fulfilment lgistics EBIT f 4.2m, up 21.7% (2015: 3.5m) Nn e-fulfilment lgistics EBIT f 5.9m, up 18.9% (2015: 5.0m) Cmmercial vehicles EBIT f 1.3m, up 20.4% (2015: 1.1m) EPS f 5.3p, up 23.3% (2015: 4.3p) Interim dividend f 2.4p per share, up 20.0% (2015: 2.0p) Nte: The highlights are fr the 6 mnths ended 31 Octber 2016, as cmpared t the 6 mnths ended 31 Octber

6 Highlights Operatinal The further penetratin f nline activity within retail is driving grwth with new and existing custmers Click and Cllect Jint Venture with Jhn Lewis Partnership finalised - KPIs cnsistently attained The Waitrse stre estate is nw fully integrated, Waitrse wine is nw als peratinal and third party retailer nbarding underway marketing push early 2017 Cmmenced several new peratins in the perid: Bulk strage cnslidatin and inventry flw management fr Halfrds Multi-channel slutin implemented fr Links f Lndn Retail & e-cmm slutin fr Mn Purse (Australian entrant t UK) E-fulfilment slutin implemented fr 4 mre brands frm the stable f a majr internatinal retailer Cntinuing strng pipeline f new business pprtunities Several new prjects in-hand within ur German peratins Cntinuing strng perfrmance frm cmmercial vehicles business 6

7 2 Financial review

8 Summary Incme Statement m 6m t 31 Octber Change Year t % April 2016 Revenue % Cst f sales (100.0) (117.3) (205.8) Grss prfit % 84.5 Other net gains Admin expenses (35.6) (40.1) (70.3) EBIT % 14.5 Net finance csts (0.7) (0.8) (1.4) Prfit befre tax % 13.1 Incme tax (1.2) (1.5) (2.8) Net incme Strng tp-line perfrmance in the perid driven by all business units Key EBIT metric saw cntinuing strng grwth, again driven by all business units Finance cst in-line with prir year Prfit befre tax ahead by 25.5% t 6.9m ( m) EPS ahead by 23.3% t 5.3p ( p) Interim dividend up 20% t 2.4p ( p) Earnings per share (p) % 10.3 Interim dividend per share (p) % - 8

9 Segmental perfrmance Revenue m 6m t 31 Octber Change % E-fulfilment lgistics % Nn E-fulfilment lgistics % Ttal lgistics % Cmmercial vehicles % Inter-segment sales (0.7) (0.9) Grup ttal % EBIT m 6m t 31 Octber Change % E-fulfilment lgistics % Nn E-fulfilment lgistics % Central lgistics csts (2.3) (2.6) Ttal lgistics % Cmmercial vehicles % Head ffice csts (1.0) (1.2) Grup ttal % Strng grwth in all aspects f Lgistics: Cntinuing rganic grwth with existing custmers, particularly in e-fulfilment (e.g Ass, Jhn Lewis and Wilkinsns) Full year impact f prir year cntract wins (e.g Philip Mrris and M&C) New cntracts brught n stream including ancillary services fr JLP at a new site in Nrthamptn, returns fr M&S, and new brands fr a majr internatinal retailer. Strage and packing f high value prducts. Investment in slutins develpment and IT infrastructure Cmmercial vehicle grwth driven by bth new vehicle sales and aftersales Share based payment charges increased by 0.2m 9

10 Summary cash flw statement m 6m t 31 Octber Year t April 2016 EBIT Depreciatin & Amrtisatin Other nn-cash items (0.1) 0.5 Change in wrking capital (0.8) Net interest paid (0.7) (0.7) (1.4) Tax paid (0.7) (1.5) (2.1) Net cash flws frm perating activities as % f EBITDA 2 76% 103% 87% Net capital expenditure (2.7) (5.6) (5.7) Investment in jint venture - (2.3) - Acquisitin f subsidiary (1.0) - (2.2) Net cash flws frm investing activities (3.7) (7.9) (7.9) Cash generated frm wrking capital includes an element f creditrs related t capital expenditure Cmmercial Vehicles wrking capital substantially funded by manufacturers Gd underlying cash flw and cash cnversin Majrity f capex is back-t-back with agreements by custmers t repay the capital thrugh pen-bk cntract mechanisms. Net drawdwn f bank lans (3.9) Finance leases advanced Repayment f capital n finance leases (1.5) (2.7) (3.2) Dividends paid (3.2) (4.0) (5.2) Net cash flws frm financing activities (1.5) 0.3 (12.1) Net increase / (decrease) in cash & cash equivalents (2.9) 1. Other nn cash items cmprise share based payments, exchange differences and mvement in fair value f derivatives 2. EBITDA calculated as EBIT plus depreciatin and amrtisatin 10

11 Summary balance sheet m 6m t 31 Octber Year t April 2016 Intangible assets Prperty, plant & equipment Investments Nn-current assets Inventries Trade & ther receivables Cash & cash equivalents Current assets Investment in fixed assets largely t supprt new pen-bk cntracts under which capital will be repaid ver the term f the cntract Net reductin in wrking capital investment Large fleet sales nw pass thrugh Nrthern Cmmercials resulting in higher grss levels f stck debtrs and creditrs Net debt 30.1m, in-line with the Bard s expectatins Trade & ther payables Brrwings Shrt term prvisins Current tax liabilities Current liabilities Brrwings Lng term prvisins Deferred tax liabilities Nn-current liabilities Net assets

12 3 Operatinal review

13 Overview The Grup s strategy is set arund fur key principles all f which have seen psitive develpments ver the perid under review: Build n Clipper s market leading custmer prpsitin and cntinue t expand the custmer base Cntinue Eurpean expansin thrugh ur prfitable German platfrm Develp new, cmplementary prducts and services Cnsider cmplementary acquisitin pprtunities 13

14 E-fulfilment Thught Leadership market psitining leading t new cntracts: Links f Lndn Mn Purse Australian brand entrant t the UK 4 further brands f a majr internatinal retailer Returns management via Bmerang fr Jhn Lewis Prject Dice (Click & Cllect) rll ut t the Waitrse estate Prject Dice (Click & Cllect) third party nbarding underway Whistles, Mint Velvet & G Outdrs all nw live Further capability has been added t the enhanced prcessing services develped fr ASOS, and which nw frms part f the Bmerang returns capability this nw als includes Bridal Wear Relcatin f G Outdrs t Swadlincte t maximise the benefit f the Click & Cllect pprtunity Large mezzanine flr expansin f the site created in 2015 fr a majr internatinal retailer t cater fr e-cmm grwth The 10 year agreement signed with Jhn Lewis nw has all fur key business streams peratinal returns management and Click & Cllect being the e-fulfilment elements Existing e-cmm custmers still experiencing vlume shift int n-line driving cntinued Clipper grwth further enhanced by the assciated returns activity 14

15 Nn E-fulfilment A further strng perfrmance in the perid. The management f the Jhn Lewis frward rders business stream cmmenced We have extended ur cntract with New Lk fr the strage and management f t-shirt blanks alng with system enhancements t imprve inventry flw New cntract with Halfrds fr the bulk handling and inventry flw management f their bicycles and mtr accessries streams the Daventry site is underging a refit t ensure ptimised handling As a result f grwth and the plan t launch ladieswear we are integrating an additinal Clipper site int ur Mrrisns Nutmeg clthing netwrk Inbund pre-retail, frward rders fr Jhn Lewis Significant tbacc rewrk activity has been handled during the perid fr ur custmers (Gallaher, BAT, PML, ITL) as a result f changing legislatin Istrak fleet management system rlled ut acrss the fleet. The benefits are driver and vehicle efficiency & enhanced fleet security, nw regarded as a best in class slutin Cntract with M&S fr stre returns management, e-cmm supprt and gift card lgistics 15

16 Click & Cllect Prject Dice It is very pleasing t reprt that we have wn the fllwing awards in recent mnths fr the Click & Cllect initiative: Retail Week Supply Chain Awards 2016 Delivery Initiative f the Year SHD Awards 2016 Innvatin Overall winner f the Awards Event Supply Chain Excellence Awards 2016 Retail & etail Award 16

17 New site develpments The new site (Nrthamptn 3) at Junctin 15 f the M1 is nw peratinal and is hme t: JLP - pre-retail, frward rders, returns management and Click & Cllect A majr internatinal retailer 4 n-line brands Dc Martens The site has further ptential mezzanine capacity and will cntinue t feature as a shared use develpment site In additin we have pened new sites at: Tannchside - ur new crss-dck hub fr Sctland Bristl - ur new crss-dck hub fr the Suth-west Bth sites have been develped t supprt custmer grwth and the Click & Cllect pprtunities 17

18 Clipper Cntinues On The Right Track 18

19 Clipper Cntinues On The Right Track Click & Cllect drives sales but nly if the utbund slutin is rbust and efficient custmers are intlerant f errrs/delays. Dice meets the challenge The pprtunity t efficiently rute custmer returns back t the Clipper returns facility via the Dice netwrk n the same day is class leading. It makes inventry wrk hard, remves custmer dissatisfactin and limits wrking capital Dice & Bmerang a great slutin set! 19

20 4 Summary and Q&A

21 Outlk Psitive mmentum int H2 and FY18: Cntract wins achieving full run-rate Click & Cllect Strng new business pipeline Cnfident f delivering strng financial perfrmance fr full year FY17 and int FY18 21

22 Appendix 22

23 Clipper s leadership team Steve Parkin Tny Mannix David Hdkin Sean Fahey Executive Chairman Chief Executive Officer Chief Financial Officer Chief Infrmatin Officer 34.0% sharehlder 1.4% sharehlder 1.4% sharehlder 7.8% Sharehlder Funded Clipper in 1992 Retail lgistics specialist Develped custmer-fcused, value-added, alternative lgistics slutin fr retailers Respnsible fr verall strategic directin f Clipper Jined Clipper in 2006 Appinted Managing Directr in 2007 Career in retail lgistics spanning mre than 25 years Chartered Fellw f the Institute f Lgistics and Transprt Jined Clipper in 2003 as Grup CFO Held a variety f bard level rles prir t Clipper, including Grup FD f Symphny Grup plc and Kunick Leisure Ltd Chartered Management Accuntant Jined Clipper in 1992 Has held psitins f Develpment Directr and Prject Directr within Clipper Currently respnsible fr the IT, prjects and implementatin functins as CIO 23

24 The Clipper Equity Stry 1 Highly attractive expsure t nline retail Structural grwth market Prviding slutins t latest challenges f nline retail: Multi-channel -> Omni-channel Returns management 5 Clear grwth strategy Further expansin f custmer base (new custmer wins, new services t existing custmers) Eurpean expansin Bmerang 2 Innvative retail specialist Specialist ffering in retail lgistics Strng histry f innvatin Strategic cnsultatin mdel Bespke sftware implementatin 6 Cmplementary cmmercial vehicles business Servicing and parts sales drive prfitability Strng prfit and cash generatin Synergies with Lgistics business Prvides scale 3 Lngstanding, blue chip custmer base Leading e-tailer custmer base (ASOS, Jhn Lewis, Gerge) Value-added cnsultancy mdel with strategic level relatinships Lw custmer churn never lst an e- fulfilment cntract t a cmpetitr 7 Strng financial prfile Attractive wrking capital prfile Operating prfit grwth cupled with high cash cnversin 4 Attractive business mdel High level f pen bk/minimum vlume guarantee, lng term cntracts Highly visible prfit and cash flw generatin Management fee allws sharing f cst savings generated fr custmers, plus benefits frm vlume upsides 8 Management track recrd Prven retail lgistics management team Cmbined 100 years experience in retail lgistics Recgnised industry leaders 24