A bit of a thumbs down from investors for Emeco Holdings, the heavy equipment rental group, despite the update showing a rise in earnings.
Emeco told the ASX yesterday that it lifted operating earnings before interest, tax, depreciation and amortisation (EBITDA) to $153.0 million (up 83% on 2016-17).
Operating earnings before interest and tax (EBIT) “also increased significantly to A$83.2 million (up 593% on FY16-17)”. Despite that shares eased 1.4% to 34.5 cents.
Emeco said it also “continued to further deleverage its balance sheet in FY18.”
CEO, Mr Ian Testrow said in the short statement “Emeco has sustained its strong performance in the fourth quarter, with continued increases in operating utilisation and operating EBITDA.
"I am looking forward to releasing Emeco’s full year results which will report operating EBIT increasing six times on FY17 and significant cash generation. We expect to continue to build earnings into FY19, particularly after completion of the Matilda Equipment acquisition earlier this month.”
In line with market practice, Emeco is abandoning regular quarterly operating updates, however it says “it will continue to update the market as necessary, in accordance with its continuous disclosure obligations.”
Emeco is due to report its full year results on August 21.
