Interbulk’s profits up, driven by rising demand

INTERBULK, the logistics company in which engineering entrepreneur Jim McColl holds a 3 per cent stake, saw pre-tax profits more than treble last year as it benefited from rising demand and lower borrowing costs.

The East Kilbride-headquartered company saw revenue in the year to 30 September rise by 10 per cent to £300.4 million – the second year of double-digit growth – with pre-tax profits rising by 204 per cent to £5.3m.

Chief executive Koert van Wissen said that although the company had seen some recent weakening in the chemical sector – one of its key markets – he expected it to be short-term volatility and the long-term story was still one of growth.

He also said the firm, which employs 450 staff in 18 offices around the world, saw significant potential for expansion in markets such as Brazil, the Middle East and China.

During the year, the group raised £18.2m through a share placing with Chinese logistics group Sinotrans, with the bulk going to pay down debts. At the year end it owed £83.7m compared with £109.3m last year.

Interbulk floated in 2006 after a reverse takeover led by McColl who is still a non-executive director. The firm initially paid £46.2m for Rotterdam-based United Transport Tankcontainers and £8.5m for InBulk Technologies, another part of McColl’s group.

Shares in Interbulk closed unchanged at 6.75p.