New Emeco MD after failed M&A deals

Emeco Holdings managing director Ken Lewsey has resigned as the company continues to push towards profitability.

The company’s chief operation officer, Ian Testrow, has been appointed managing director following the announcement.

New changes to Emeco’s board also include the elevation of chief financial officer Greg Hawkins to executive director for finance.

Chair Alec Brennan thanked Mr Lewsey’s contribution and attributed the resignation to cost-cutting initiatives.

“In his work leading the project fit cost reduction initiative it became clear to Ken that further management downsizing was required and, accordingly, he has decided that it is now time for him to step down,” Mr Brennan said.

The changes at the top of the company come after the June 29 announcement that the company was not going ahead with either of its proposed acquisition of Rentco or merger with Orionstone.

Orionstone and a number of Emeco’s shareholders had opposed the Rentco purchase, while the merger talks with Orionstone had proved inconclusive.

At the time Mr Lewsey said that the company was expecting to achieve a $14 million decrease in costs over the 2016 financial year.

Emeco’s previous cost cutting had successfully cut its half-year losses by over 70 per cent to $54.6 million in the six months to December last year, compared with the previous half’s result.

The managing director of the company since 2013, Mr Lewsey had before that worked with Aurizon for nearly six years, the final two of which as Aurizon’s executive vice president for business development.

Mr Testrow has been with Emeco since 2005, before which he was a business manager at Dyno Nobel.

Previous to his 2014 appointment to chief of operations, he served as Emeco’s president for new and developing business, and before that as president for Americas at the company.

Mr Hawkins was recruited by Emeco in July 2014, after serving as chief executive of London-based firm African Barrick Gold.

Emeco shares closed the day down 4.3 per cent to 6.6 cents a share.