Clipper Logistics has told shareholders that operating profit for the year to 30th April 2019 is expected to be £20.2 million. This is moderately below expectations, and is the result of profits from some new contracts being recognised in 2020 rather than 2019.
The move will result in a corresponding uplift in profits in 2020.
The company which releases its full year results on 30th August, said revenue for the year was slightly ahead of current market expectations.
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.”
