Company news: Emeco
Emeco has released its 1Q trading statement for FY-16. Group utilisation has increased to 75%, as compared to 59% in Q1 FY-15. Revenue increased 12%, and the EBITDA margin was 24%, as compared to 9% last year (EBITDA = earnings before interest, tax, depreciation and amortisation). Emeco generated $9m in operating cashflow, with increasing momentum as we move forward. The company remains firmly focused on delivering $14m of cost savings in FY-16. Additionally, Emeco now has one customer operating the new Emeco Operating System (EOS) technology platform, which has delivered cost savings for the customer (and improved returns for Emeco). Whilst industry conditions remain variable, Emeco is slowly rebuilding itself back to where it should be. This offers significant upside to shareholders, if they can be patient.