27th Aug 2019 09:59
(Alliance News) - Clipper Logistics PLC said Tuesday it expects to report earnings for financial 2019 "moderately" below current market expectations due to the timing of several contracts resulting in them being booked in financial 2020 instead.
The logistics firm did note however that its revenue for the year that ended April 30 will be "slightly" ahead of current market expectations.
As a result of the timing issue, Clipper Logistics expects to report earnings before interest and tax of GBP20.2 million, but expects to see an uplift in financial 2020. The company didn't specify the amount of earnings pushed back by the contract timing.
In financial 2018, the company reported Ebit of GBP20.9 million on revenue of GBP400.1 million.
Explaining the contract timing issue, Clipper Logistics 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. Whilst the determination of whether the transaction should be accounted for in financial 2019 or financial 2020 is a very fine one, on balance it has been determined that the profit should be recognised in financial 2020."
Shares in Clipper Logistics were 0.9% lower in London on Tuesday at 223.00 pence each.
Related Shares:
CLG.L