31/08/2017 - 13:57

Emeco narrows loss after big year

31/08/2017 - 13:57

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Heavy equipment supplier Emeco Holdings has its sights set on a positive year ahead, after narrowing its net loss to $180 million following a year of write-downs and the completion of a three-way merger.

Heavy equipment supplier Emeco Holdings has its sights set on a positive year ahead, after narrowing its net loss to $180 million following a year of write-downs and the completion of a three-way merger.

Perth-based Emeco’s full-year net loss result was an improvement on its FY16 net loss of $225.4 million, and was largely impacted by $103.2 million in impairments.

However, revenue was 12 per cent higher to $208.8 million as earnings before interest, tax, depreciation and amortisation gained 54.1 per cent, to $54.2 million.

It was a transformational year for Emeco, with a key highlight being its merger with east coast companies Orionstone and Andy’s Earthmoving, and an asset swap agreement that allowed the company to exit its struggling business in Chile.

“The outlook for Emeco is positive for FY18 and beyond,” managing director Ian Testrow said.

“The merger and asset swaps resulted in an additional 500 pieces of equipment for Emeco in Australia, boosting our potential to take advantage of increasing mine site production levels due to stronger commodity prices and stronger demand for equipment.

“We have a strong pipeline of projects coming to market in thermal coking coal, base metals and gold.

“We will continue to grow our market share in Australia through stronger and longer-term customer relationships and a greater value proposition, while selectively pursuing strategic consolidation opportunities.”

Emeco shares were 4.1 per cent higher to 17.7 cents each ahead of the close of trade.

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