Bulk of profit gains came from reduction in debt interest costs
Logistics firm InterBulk has reported a rise in pre-tax profits for the first half of the 2012 financial year despite a three per cent drop in revenues.
The East Kilbride business has reported revenues of £141.3 million for the six months to March 31 against £146.1 million for the same period last year.
Gross profits were also down four per cent to £19.4 million and earnings before interest, tax and other costs were down eight per cent to £10.7 million.
Pre-tax profits rose by 19 per cent to £2.52 million, up from £2.1 million last year and profits after tax were up 43 per cent to £1.93 million on £1.3 million.
The bulk of the profit gains came from a £1.3 million reduction in interest costs on net debt, which has fallen by 27 per cent on the first half of last year to £78.1 million.
However earnings per share fell by 12 per cent to 0.45 pence, which the group said was a result of an enlarged equity base.
InterBulk said its dry bulk division saw a strong recovery compared with the same period a year ago, which helped to offset a drop off in revenues in the liquid bulk division.
The group announced in May it had secured a new 10-year contract worth £8.1 million in Serbia with a subsidiary of petrochemical firm Sibur, which will be reflected in second half results.
InterBulk, which is part-owned by Jim McColl's Clyde Blowers, said it was also expanding its fleet to take advantage of the growing opportunities in Asia.
However, the group warns problems in the eurozone economies “could create a disturbance in the supply chains” it serves.
Chief executive Koert van Wissen said this could create problems “both in terms of logistics activity but also fleet balance, and this introduces more downside than upside risk to these forecast expectations”.
He added: “Our robust business model, strong competitive position, and growth opportunities for dry and liquid bulk intermodal solutions provide a positive environment for future success.
“We have positioned the business well to support delivery on our strategic growth targets while sustaining our core business and customer relationships.”