News blog

InterBulk Group

• BY: Andrew Hore |
• POSTED: 25/06/2014 |

Intermodal transport equipment and services provider InterBulk Group expects a stronger second half following a dip in interim profit.

Declines in European polymer manufacturing capacity has hit demand for the dry bulk division, which slumped into loss. There was an increase in liquid bulk revenues, but profit was flat.

In the six months to March 2014, revenues dipped from £133m to £130m, while the company went from a profit of £315,000 to a loss of £416,000. Exceptional costs increased from £430,000 to £805,000 and these are mainly redundancy costs. Over 12 months net debt fell from £74.9m to £66.4m. This has helped to reduce interest charges.

There will be significant cost savings in the second half. Westhouse expects underlying full year profit to improve from £2.6m to £4.3m.

Net debt is expected to be around £70m at the end of September 2014, similar to the same time last year.

At 3.88p a share, InterBulk is valued at £18.1m. The shares are trading on less than six times prospective earnings.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2014_57.pdf