InterBulk's profits may be sharply up, but weaker demand for chemicals and polymers since the year-end, blamed partly on the eurozone debt crisis, has hit business. Still, the logistics group can claim some success in tackling its own borrowing problems - selling a 35 per cent stake to China’s Sinotrans in June has cut net debt to £83.9m from £106m in March and helped save £3.1m in finance costs. Another £1m of benefits will come through in 2012.
Still, the lower rate charge flattered these results - underlying operating profit grew 3 per cent to £15.5m. Revenue from liquid bulk operations rose 7 per cent to £171m, driven largely by deep-sea activities - now roughly 60 per cent of the unit’s total sales. Higher fuel prices squeezed margins, however, knocking 2 per cent off operating profit to £12.5m. Improving sales throughout the period meant the largely Europe-focused dry bulk division expanded revenue 14 per cent and profits by 8 per cent to £3.9m. Diversification away from the European polymer market towards food and minerals, an area that grew sales 17 per cent, is ongoing.
Given the uncertain economic outlook, Arbuthnot Securities has trimmed estimates for adjusted pre-tax profit in 2012 by 9 per cent to £6.5m, giving adjusted EPS of 1p (2011: £5.3m/1.1p).
INTERBULK (INB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 6.75p | MARKET VALUE: | £20.4m | |
| TOUCH: | 6.5-7p | 12-MONTH HIGH: | 8.75p | LOW: 3.88p |
| DIVIDEND YIELD: | nil | PE RATIO: | 6 | |
| NET ASSET VALUE: | 27p* | NET DEBT: | 101% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 162 | nil | 1.00 | nil |
| 2008 | 240 | 0.72 | 0.27 | nil |
| 2009 | 232 | -2.75 | -0.79 | nil |
| 2010 | 273 | 1.77 | 0.63 | nil |
| 2011 | 300 | 5.38 | 1.11 | nil |
| % change | +10 | +204 | +76 | - |
Ex-div: - Payment: - *Includes intangible assets of £127m, or 42p per share | ||||
