Three-way link on track with view to surviving mining downturn
International mining equipment and rentals firm Emeco has reported promising figures in the wake of its merger plans unveiling.
This past quarter saw group utilisation rose from 75 per cent in the same quarter last year to 85 per cent and its first half unaudited revenue is up $4 million to $46.5 million on the previous quarter.
Emeco revealed in September plans to recapitalise and merge with heavy earthmoving equipment rental company Orionstone and Andy’s Earthmovers in a bid to beat the mining downturn.
That announcement came a year after MD Emeco Ian Testrow took over from Ken Lewsey after a bid to merge with truck rentals company Rentco failed.
While Emeco has little by way of a commercial vehicle exposure, Andy’s does through H&H Heavy Haulage, while Orionstone has ancillary equipment including water and service trucks.
For Testrow, the present company performance will support the merger.
“Notwithstanding the significant amount of work performed during the period on recapitalisation and merger transactions, our team has remained focused on the delivery of operational excellence and cost management, a testament to the depth of our management team,” he says.
“The operational improvements Emeco has made in the past 18 months, with the resultant improvement in EBITDA margins to 42 per cent, up from 19 per cent in the prior corresponding period, provides a strong future growth platform for the merged Emeco, Orionstone and Andy’s businesses.
“In addition, we have achieved a number of key recent wins in our WA business during the quarter, through leveraging our leading fleet capabilities, innovative technology offering and value added services to capture these opportunities.”