News blog

InterBulk Group

• BY: Andrew Hore |
• POSTED: 27/12/2014 |

Intermodal transport equipment and services provider InterBulk Group reported a better than expected full year profit and further substantial asset write-downs. 

In the year to September 2014, underlying profit was £3.2m, compared with the downgraded forecast of £2.6m. The previous profit forecast was £4.3m. Revenues were 6% lower at £256.3m. Even more importantly, net debt fell from £69.5m to £60.2m.

That is before impairment charges of £34.3m, mainly relating to the dry bulk division, following £15.1m the previous year. NAV was £38.7m at the end of September 2014, which includes £71m of goodwill.

Dry bulk revenues fell from £114.2m to £101.9m, although the profit contribution was only slightly lower at £1.66m. Liquid bulk profit improved from £7.71m to £7.85m despite a 2% decline in revenues to £153.6m – all down to currency movements.

The decline in the oil price led to destocking by chemical company customers of the liquid bulk division in the last two months of the period. The division continues to develop international business and the chemical sector is expected to grow this year.

New global plastics capacity hit the European polymers customer base of the dry bulk division. Revenues from the food sector also declined.

Westhouse is maintaining its 2014-15 profit forecast at £4.6m, helped by additional cost savings.

At 4.13p a share, InterBulk is valued at £19.3m. The NAV is twice that level. The shares are modestly rated but the borrowings, despite being lower, remain high and the debt facilities have to be renewed in 2016. The refinancing could happen in 2015.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2014_63.pdf