Investment Matters

Company news: Emeco

Emeco, in which you have a small holding, announced a third quarter trading update. Operationally, Emeco is performing well with EBITDA margins of 24.2% in Q3-16 versus 19.9% in Q2-16 and operating cash-flow of $12.7m for Q3. However, overall revenue was down 19.9% on this time last year, primarily due to current 'oil market' related challenges in its Canadian operation. Emeco has now effectively exited Canada.

Emeco is continuing to produce operating cashflow and trade as well as it can through this tough cycle. It remains very cheap (trading at only 15% of its hard asset value). As has been seen via public statements made several times Emeco is engaged in discussions with many parties to restore value and return the business to rude health. We would expect to see results from this over the next year.