A logistics firm based in East Kilbride has seen its earnings fall in the year, with the company blaming the economic climate in Europe.
InterBulk Group has reported that revenue fell by 7 per cent to the end of September. Blaming the slump on a stalling chemical sector across the continent, the firm posted earnings of £280m for the year.
However, the company actually achieved an annual operating profit of £5.2m. This is the same level as 2011. The firm says that its refinancing, which has effectively reduced its interest commitments, was key to this.
It also said further debt cutting strategies were helping profits to be maximised. The company’s non-executive chairman, David Rolph said:
“In early October 2012, we announced the successful completion of the refinancing programme. The new debt package in place since the beginning of the new financial year provides a sound platform for the next four years and reduces the group’s cost of debt by approximately £1.5m per year.”
InterBulk is not the only firm seeing such action have a positive effect. As firms across Scotland move away from traditional lending, debt streams are being reduced. Many are doing this with the help of invoice factoring.
InterBulk also saw its dry bulk division return to profit, largely helped by growth in food. The performance here went a long way to picking up the slack from losses in its liquid bulk operations.
With plans for further growth in China, Rolph went on to say that opportunities would continue to be explored where possible.