Clipper Logistics profits lower than forecast

Operating profits at Clipper Logistics are to be slightly lower in the year to 30th April 2019 than expected thanks to profits from certain new contracts that will be recognised in the next financial year. Profits for 2019 are expected to be around £20.2 million.

Revenue for the year is slightly ahead of current expectations. The full year results are set to be released on the 30th August.

In a statement, it said: “As part of the Group’s full year audit process, it has been determined with the Group’s auditors, KPMG, that the profit generated from certain new contracts won towards the end of the financial year fall to be accounted for as a business combination under IFRS3.

“While the determination of whether the transaction should be accounted for in FY19 or FY20 is a very fine one, on balance it has been determined that the profit should be recognised in FY20.

“As a result of this timing impact, the Company expects to report EBIT for FY19 of £20.2m, moderately below current market expectations, with a corresponding uplift to EBIT for FY20.”

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