SHARES in logistics company Interbulk have dropped 5.1 per cent after the firm warned that profits are set to fall short of forecasts for the second year in a row.
The firm, which counts Scottish engineering veteran Jim McColl among its directors, said profits for the year to the end of September are set to be broadly flat on last year, when it made an underlying pre-tax profit of £2.6 million on revenues of £271.5m.
East Kilbride-based Interbulk blamed lower volumes in its European dry bulk business, which transports petrochemicals, food and minerals, for the disappointing performance.
Despite cost cuts in the business this year, the firm said it could not make up for the closure of polymer plants in Europe and the resulting dent in its transportation volumes. "The group's cost base remains under constant review but we are also adjusting our business mix to ensure a focus on core transportation hubs where margin quality and fast turnaround of equipment is more secure," the company said yesterday.
The firm's liquid bulk containers operation has fared better, with growing demand and improved margins.
Interbulk's shares, which are traded on the Alternative Investment Market, closed at 4.15p yesterday.
The shares took an 11 per cent knock in April when it warned half-year earnings would be lower than expected, following a prediction in October 2013 that its full-year results would disappoint the market.
"There is no doubt that trading conditions, especially in the dry bulk European market are tough, but our strong focus on customer service levels and cost leadership puts us in a position to maintain our strong market share," said chief executive Loek Kullberg yesterday.
The company brought in Chinese logistics group Sinotrans as its largest shareholder in 2011.
Mr McColl, who is the preferred bidder to rescue Ferguson shipyard, oversees a minority stake in Interbulk through his Clyde Blowers Capital venture.
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