Emeco narrows loss to $55m

Perth-based mining equipment supplier Emeco Holdings has narrowed its net loss by 70.2 per cent to $54.6 million for the six months to December.

Emeco’s revenue was down 10.6 per cent to $110.7 million, with the company expecting an improvement in the second half with an increase in fleet utilisation.

Managing director Ken Lewsey said the company managed to rebuild utilisation, continued to see positive business development opportunities across all geographies and was aggressively pursuing its corporate strategy to deliver new earnings steams.

“Turning this business around in the current market was always going to take time, but we’ve had some major achievements in this rebuilding phase, in particular getting our fleet of equipment largely back to work,” he said.

“The market is extremely competitive and margins remain tight... but our liquidity remains strong.

“We have good relationships with our clients and we are continuing to show how we can deliver them value opportunities through our service offering.”

Emeco declared no interim dividend.

Shares in Emeco were steady at 12.5 cents per share at the close of trade.