Interbulk

Chemical transportation specialist Interbulk (INB) has reported a resolute set of results as its niche service continued to hold its ground.

The AIM-quoted concern declared a 3% rise in operating profits to £15.5m on sales of £300.4m (2010: £273m) for the year to September. Pre-tax profits almost tripled from £1.78m to £5.3m as a result of a change in a lower interest rate swap while net debt fell from £109.3m to £83.9m. EPS climbed from 0.67p to 1.12p.

It was a busy year for the group, which held a placing in June with Chinese logistics giant Sinotrans that raised £17.4m via the issue of 165 million shares at 11p a share. Across its divisions both its dry bulk and liquid bulk operations grew sales, by 14% and 7% respectively.

In an interview with Growth Company Investor chairman David Rolph enthused the business was 'taking advantage of the opportunities for long-term growth' adding that it is in both 'Russia and the Middle East' with a 'strong partner' (In the form of Sinotrans) in China. September saw the launch of the the Sinotrans Interbulk Alliance and the group is particularly keen to exploit opportunities in the country.

Analysts at house broker Arbuthnot are forecasting pre-tax profits of £7.2m (EPS: 1.08p) on revenues of £320.3m for the year to September 2012.

A group with a considerable presence in emerging markets, the deal with Sinotrans holds considerable potential for its chances in China. With some moderate growth prospects the shares look fairly valued at the current price. Hold.