Could Qube Holdings Ltd transport your portfolio higher in FY 2015?

Qube Holdings Ltd (ASX:QUB) is already a $2.5 billion logistics provider but further growth could lie ahead.

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Shares in Qube Holdings Ltd (ASX: QUB) have rallied around 4% today after the logistics, ports and transport operator released a strong set of results.

Strong profit growth

Underlying revenue gained 14% to $1.2 billion and underlying net profit after tax added 20% to $88.6 million. Meanwhile, underlying earnings per share on a pre-amortisation basis gained 15% to 9.8 cents and the full year dividend was increased by 13% to 9.8 cents per share.

The results are impressive for the relatively young company; of particular note was the broad-based nature of the growth. The Logistics division increased revenue by 10% and expanded from road based logistics into containerised rail and also bulk grain haulage. Given Australia's comparative advantage in agriculture, Qube's increased focus on agricultural commodity transport appears a clever move. Meanwhile the Ports and Bulk division grew revenues by 18%, thanks to acquisitions in the Bulk segment and contract wins in the Ports segment.

Outlook

Although management didn't give any concrete numbers, it was upbeat in its outlook statement and has guided the market to expect another record profit in FY 2015 with both operating divisions expected to grow in revenues and earnings.

Future growth prospects include the development of a major intermodal logistics hub at Moorebank in NSW. This proposal is being progressed in partnership with peer Aurizon Holdings Ltd (ASX: AZJ).

Shareholders will no doubt be pleased with both the operating performance of Qube over the past 12 months and also the share price performance which has seen a 31% rally. The stock now trades on a FY 2014 price-to-earnings ratio of 24.3 which might limit the near-term upside for the stock from here.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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