Mixed market conditions and FX movements provided a challenging backdrop to FY15 trading, but Low & Bonar delivered the expected progress. Improving profitability from core operations in FY16 is likely to come mainly from well-flagged internal initiatives, in our view. We have trimmed estimates modestly, including a lower JV contribution. The P/E rating is sub-10x from FY17 and suggests that translating strategic change into faster earnings growth would be a catalyst for outperformance.