Quarto’s profits are H2 weighted and, in FY15, Q4 proved a particularly strong trading period. At end Q315, the group was on track to meet FY15 expectations; at the year-end update, the indication is that results will be ahead of forecasts, allowing a rise in dividend. Net debt of $59.7m was $21.7m lower than the 2011 peak, reflecting good cash conversion. The share price performed well over H215 (helped by the normalisation of the share register), but has drifted off with the market more recently. The valuation remains at a substantial discount to other smaller international publishers, which trade on 9.4x CY15 P/E and 5.0x EV/EBITDA.
