Interbulk, the AIM-listed logistics group backed by Jim McColl's Clyde Blowers, has swung back into profit.

The business has been battling weak demand due to the oil price fall, and needs to reschedule its £56million debt, but its first half saw a £1.4million turnaround in pre-tax profit.

Although revenues were hit by destocking activity in the chemical industry, falling 11per cent from £130m to £115m, the pre-tax loss of £416,000 a year ago bounced into a £960,000 profit. Underlying pre-tax profit almost trebled to £2m, and core operating profit was up by one third at £4.6m.

The advance was driven by margin improvement, generated though a better revenue mix and lower administrative costs, and against headwinds of a rising dollar and weakening euro on its sterling-reported results. Debt was reduced by £4m.

Loek Kullberg, chief executive, said: "Activity and utilisation levels in the first half have been subdued mainly due to destocking as a result of the sharp drop in oil price. While external market demands and specific fleet balance between regions remain volatile, especially in Europe, we expect to deliver continued improvement in our operating results in the second half of the year."

Interbulk was listed in 2007 and Mr McColl, who holds a 3.5 per cent stake, is on the board as is finance director Scott Cunningham, and Macfarlane Group chairman Graeme Bissett who shares with Mr Cunningham a background at Arthur Andersen. Bank of Scotland still holds security over Mr McColl's shares in respect of loans, according to the annual report.

InterBulk is a leading supplier of global intermodal logistics solutions for the movement of liquid and dry bulk materials, with an outsourced business model. It is one of the world's largest operators of tank containers for the movement of liquids and is Europe's leading provider of intermodal 'bag-in-box' containers for shifting dry bulk products. Over 75 per cent of the shares are held by two global logistics businesses and one private equity group.

Mr Kullberg said the group was now centralising its short-sea intra-European liquid bulk customer service and operations to the UK, which would bring a lower cost base and improved control. He said the Asian network had expanded, with the support of 35per cent shareholder Sinotrans, and the East Kilbride-based group was now on the ground in Japan, Singapore and Malaysia. "Further investment is expected to be made in South East and North East Asia in the next six months," he added.

The group reported "positive outcome from a high level of tendering", with a retention of all key accounts, and further growth in the liquid tank container fleet to 11,100 units to enable further expansion of the business globally.

Liquid bulk revenue fell by11per cent but core operating profit held steady at £3.5m.

In the Dry Bulk division in Europe, where restructuring accounted for most of a £700,000 exceptional cost, Interbulk traded well despite continued tough market conditions, and managed to hike operating profit to £1.1m.

Mr Kullberg said an overcapacity of equipment in the market was putting pressure on rates. "Our outsourced business model, which has a high degree of variable costs, enables us to adapt our cost base in line with demand, and we continue to use our procurement skills to increase efficiency in this area. In addition, our efforts continue in streamlining our own organisation especially in Europe."

Chairman David Rolph said: "Encouragingly, and following the trend set in each of the last five financial years, we have further reduced our net debt which now stands at £56.2m. We continue to work towards a group and financial structure which will support the refinance of our existing bank facilities, which are due to expire in September 2016. The operating profitability and cash flow performance in the six months to 31 March further support this strategy."

The shares opened the year at 4p, slipped to a four-year low of 3.5p in March, and were steady at 4.62p yesterday, valuing Interbulk at £17.5m.