Interbulk worried by low share price

Interbulk, the East Kilbride-based transport logistics business and part of the Clyde Blowers group, is suffering a similar fate to Clyde Process Solutions.

Interbulk chairman David Rolph said it was "examining all options" for the future of the company in which a German firm has recently built a sizeable stake.

Announcing a return to sales growth, Rolph said the board believed the current share price "substantially undervalues the group".

He said the board had "noted" purchases by Hoyer GmbH Internationale Fachspedition, a German-based logistics group which took its stake up to more than 23 per cent. "It remains a concern of the board that share transactions have continued at low prices," he said. "The board, with its advisers, are examining all options to ensure that true shareholder value is reflected in the share price."

Last month McColl, founder of Clyde Blowers and who is also a non-executive director of Interbulk, said that the Aim market was not properly valuing smaller companies and that Clyde Process Solutions was worth twice its market capitalisation.

Shares in Interbulk rose 12.5 per cent yesterday to 4.5p, valuing it at 13.6m.

Turnover rose by 9 per cent to 126.2m from 116.9m. Profit before tax fell to 558,000 from 1.8m the year before, when the company had received one-off gains of 900,000. Operating profits before exceptional items and amortisation rose by 26 per cent to 9.03m.

Chief executive Koert van Wissen said new business activity had improved across all key areas of the business. "While uncertainty in market and economic conditions remains, we look forward to reporting further progress in the second half," he added.

House broker Arden Partners described the results as "robust". "We continue to believe Interbulk is undervalued and this sentiment is shared by trade buyers as highlighted by Hoyer's recently strengthened equity position," he said.