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P FUNDING

25th November 2010
Page 10
Page 10, 25th November 2010 — P FUNDING
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Clipper targets private equity firms for expansion capital

chris.tindatliarbi.co.uk CLIPPER LOGISTICS says it has received interest from half-a-dozen private equity businesses to snap up a large slice of the company to help fund its growth plans.

Chief executive Steve Parkin says a failure by the banks to lend anything like the money needed to expand the business means it is exploring other means of funding.

He confirms that in the past six months, six private equity firms have looked at the company and that one has recently offered f75in for a 20% stake in the business. He adds that a decision has not yet been made and that other avenues are being explored.

"Like all businesses, the hank has created a lot of problems for us, so like other businesses we are looking at other ways of funding," he says.

"Because of our success, we have had an awful lot of interest. I appointed consultants to look at our options. This is one, but it's not a certain road we are going down. I will do what is best for the

r business and shareholders.

He adds: "We have a lot of new business coming online. Our pipeline has never been as strong. Contracts need funding. We can fund a certain amount through cashflow; other things need funding in other ways. We need to accelerate growth further and we have to do that a different way."

Parkin says his ambition is to eventually float Clipper on the stock market to "create a legacy".

He adds that it has won contracts with Asda, Tesco and John Lewis by being competitive and innovative. "We focus on areas we believe are higher margin," he says. "Look at our management structure, it's very flat. I believe in very short reporting lines, and by doing that we create a very lean business.

"We do not win business on price. We are offered an awful lot of tenders where we know the margins are so thin. Why do we want to be working for 1% margins? There's no fun in that."

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