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.


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