Emeco Holdings Limited Updated on the Operations for the Fourth Quarter 2018 and announced Unaudited FY18 result

Improved Performance for the Fourth Quarter and Strong Unaudited FY18 result: Emeco Holdings Limited’s (ASX: EHL) stock fell 3.7% on July 16, 2018 despite the company announcing an improved operating and financial performance for the Fourth Quarter 2018 and Strong Unaudited FY18 result. During the fourth quarter 2018, EHL expanded its operating EBITDA margins to 41.4% (up 90bps on 3Q18), which generated the operating EBITDA of A$45.0 million (up 10% on 3Q18). This growth is due to the ramp up of new projects increasing operating utilisation to 62% at the end of the fourth quarter. For FY18, EHL has delivered 83% growth in the operating EBITDA to A$153.0 million compared to prior year. FY18 operating EBIT has also expanded 593% to A$83.2 million. EHL is further deleveraging its balance sheet in FY18, and has reduced net debt / pro forma run rate operating EBITDA to 2.0x. Moreover, EHL expects FY 18 operating EBIT to increase six times on FY17 and generate significant cash. The company will continue to build earnings into FY19, after completion of the Matilda Equipment acquisition earlier this month. As a result, EHL stock has risen 31.23% in three months as on July 13, 2018.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s