McAleese Limited (ASX: MCS) Since listing last November, McAleese has reported bad news
McAleese Limited (ASX: MCS) Since listing last November, McAleese has reported bad news. In January, Coote's Transport lost the national Shell fuel distribution contract and the NSW BP fuel transport contract accounting for a $92.5 million loss in annual revenue. In February the company went in to a trading halt announcing underlying NPAT was expected to be $12.6 million below consensus, they also announced a one-off cost of $66.4 million. In April McAleese announced further downgrades to revenue and EBITDA. However, on the 11th of August the company announced that annualised three month EBITDA for July was $90-95 million, ahead of previous guidance, and they sold Liquip for $65 million. Ongoing restructuring and reduction in financial risk via asset sales has seen EPS forecasts rise for coming years and an with an estimated FY15 P/E of 7.5 we see value emerging in this company. Our monthly newsletter is available here:(VIEW LINK)
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