Emeco continues to improve

ANOTHER strong quarter has resulted in turnaround story Emeco posting a stellar result for the year.
Emeco continues to improve Emeco continues to improve Emeco continues to improve Emeco continues to improve Emeco continues to improve

Staff reporter

June quarter unaudited EBITDA rose by 10% quarter-on-quarter to A$45 million - more than the total for the entire 2017 financial year.

EBITDA margin further improved from 40.5% to 41.4%.

The equipment rental provider said the strong result was largely due to the ramp-up of new projects which increased operating utilisation to 62% at the end of the quarter.

Unaudited EBITDA for the 2018 financial year was $153 million, up by 83%, while EBIT of $83.2 million was up a whopping 593%.

"Emeco has sustained its strong performance in the fourth quarter, with continued increases in operating utilisation and operating EBITDA," Emeco CEO and managing director Ian Testrow said.

"I am looking forward to releasing Emeco's full year results which will report operating EBIT increasing six times on FY17 and significant cash generation.

"We expect to continue to build earnings into FY19, particularly after completion of the Matilda Equipment acquisition earlier this month."

Emeco continued to further deleverage its balance sheet in FY18 and reduced net debt/pro forma run rate operating EBITDA1 to 2.0x.

The company raised $90 million in May as part of the Matilda acquisition.

Emeco will report its detailed full-year results on August 21.

Shares in Emeco were unchanged at 35c in early trade, valuing the company at $1.1 billion.