Qube Holdings (QUB) - FY15 Results

Concern around P&B division in FY16 as contracts roll off in conjunction with weak bulk markets. QUB’s comments today suggest that its earnings growth will be hard to come by in FY16, however organic growth and full yr contribution from acquisitions should offset the weakness in trading conditions. The market was at 5% growth coming into the result which looks about right in our view. Exposure to Fe reduced, iron ore made up 15% of P&B division revenue down from 23% in FY14. FY16 will be a year of capital re-allocation and investment with difficult trading conditions. QUB is undertaking a lot of investment and projects that will begin to flow through in FY17/18 which is where the real value will start to be realised in our view. Read the full summary here: (VIEW LINK)