Qube Holdings has announced its latest financial results and a leadership change this week.
Qube reported strong market positions and its diversification strategy enabled it to continue to achieve solid earnings growth and deliver on guidance despite challenges in some parts of the business for the year ended 30 June 2019.
Underlying Net Proft after Tax (NPAT) for the reported period was $123.2 million (+15.4 per cent year-on-year); statutory NPAT attributable to Qube was $196.6 milion ($212.6 million pre-amortisation; and underlying revenue growth was $1.73 billion (+4.7 per cent).
Other highlights for the year ended 30 June 2019, according to Qube, include: sound progress with planning, construction and leasing activities at Qube’s Moorebank Logistics Park (MLP); Patrick delivered a solid increase in earnings supported by market growth, increased market share and productivity improvements; acquisitions and growth capex completed or announced during the period provided further diversification and support future earnings growth; and statutory earnings include sizeable fair value gains on Qube’s investment properties (slightly below the comparable FY18 gains) which were partially offset by theimpairment of Qube’s investments in NSS, Prixcar and Quattro.
“In the face of some strong economic headwinds, this is a pleasing result,” Qube Managing Director, Maurice James, said with reference to releasing the full-year results.
“Qube’s diversification strategy has protected the business from a slowing economy and helped deliver our continued good performance.
“Throughout 2019, management focussed on growing market share, defending margins in a competitive environment while maintaining tight control of costs across the business units.
“This result also reflects Qube’s significant investment over many years on equipment, facilities and technology to build scale, improve efficiency and reduce costs, thereby enabling it to provide a cost effective, reliable service to its diverse customer base.
“The result also benefitted from several acquisitions that expanded Qube’s service capability, geographic and product diversification and brought additional management depth and expertise to the group,” he said.
In Financial year 2020, Qube expects similar overall economic and competitive conditions to FY’19 with a continuation of the subdued trends in container, grain, vehicle and general cargo volumes and no significant change in conditions in Qube’s other key markets including bulk commodities, forestry products and oil and gas related activities.
Qube’s organic growth opportunities, combined with the earnings from its recent and future capital expenditure, are expected to support sustainable earnings growth over the medium to long term.
Qube this week also announced the appointment of Stephen Mann to the board of
directors, effective 1 September 2019.
Mann is reported to have extensive strategy, transformation and business development experience across multiple geographies and different industries including rail, infrastructure, resources and transport.
Mann was reportedly selected via a comprehensive recruitment process from a strong talent pool comprising equal numbers of men and women. He was ultimately identified as having the skillset best aligned to Qube’s long-term strategy, particularly in the area of intermodal and infrastructure development.
“I’m very happy Steve has agreed to join the Qube board and believe he will make an excellent contribution,” said Qube chairman, Allan Davies.
“Steve’s mix of skills and experience will be valuable to Qube’s operations and strategy, particularly the ongoing development and operation of the Moorebank intermodal project,” he said.