A company linked to North-West magnate Dale Elphinstone has been thanked for its support of a listed company which has fought back from tough times.
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Engineering services company Engenco Limited on Tuesday said documents had been executed relating to debt facilities totalling $13.1 million with the NAB.
Elph Pty Ltd had previously provided funding facilities to Melbourne-headquartered Engenco.
Engenco said those had been terminated and a bank guarantee facility with the Commonwealth Bank would be terminated in due course.
“We are pleased to have finalised these new arrangements with NAB that will help position us to convert the significant growth opportunities that lie before us and which are playing out,” Engenco managing director and chief executive Kevin Pallas said.
“Having now achieved our goal of a more normal bank funding position, we wish to thank the Elphinstone Group sincerely for having supported Engenco from a funding perspective for the last several years.”
Mr Elphinstone is a former chairman of Engenco and remains on the board.
He was overwhelmingly re-elected as a director on Wednesday, along with fellow director Ross Dunning.
Mr Pallas said Engenco’s performance had steadily improved in the past few years “as our primary strategies began to realise the potential of our core businesses”.
“This has resulted in the group’s strong balance sheet, sound financial reserves and growing revenue streams,” he said.
“Our businesses are well prepared to address markets that previously were difficult for us to penetrate, and business conditions in Australia remain healthy in most of our market segments.”
He said Engenco was positioned to convert significant growth opportunities, including potentially winning several large tenders “for which we are favourably placed”.
Engenco reported a net profit after tax of $18 million for 2017-18, with revenue up by 22 per cent to 157 million.
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