While the focus of the business is on the rental and leasing of its earth moving equipment, EHL also sells, services and provides parts for the equipment.
EHL has been one of the hot stocks in recent months, rising from a low of 45 cents in May to close Friday’s session at 95 cents.
Last week, EHL provided 1H11 earnings guidance of $27 million – $29 million, with the result reflecting a strong recovery in EHL’s businesses during the half.
EHL advised that at an operational level, it has secured new contracts for some of its large fleets, and as such the risks to its earnings have now subsided.
Furthermore, the completion of EHL’s debt refinancing has led to an increase in interest margins, which are reflected in the 1H11 earnings guidance.
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