Company news: Emeco
Emeco released a First Quarter 2017 trading update. As we have been seeing for some time, Emeco is now under the control of a terrific management team. This quarter the company reported group utilisation of 85% and an EBITDA margin of 37.6%. This is a great result in a still tough environment. In Emeco's best year ever (in the peak of the boom) it produced a margin of 46%, and under prior management it hit 17.9% (in 2015).
The result itself, however, is of course overshadowed by the proposed merger of Emeco with Orionstone and Andy’s Earthmovers (combined with debt restructuring and rights issue), which should be voted on in December. These operational results will give all parties confidence that the new Emeco (which will be managed by the Emeco team) will be well positioned to take advantage of the many opportunities that will arise for this industry. We are looking forward to this.