Yes, you're correct. After the consolidation we will all have 1 share for every 10 held at the moment and (theoretically!) the new price will be ten times higher than the current one.
The principal benefit is that the stock may be a little easier to price accurately (I know - quite a subject in itself). Obviously there are more price points (eg: 0.25¢ ones) for a stock at 10¢ than there are for one at 1¢. This may help to narrow the bid-offer spread and therefore make the stock more attractive to investors (unlike the ridiculous 0.50p - 1.00p spread seen at the end on AIM).
However, the performance of a stock depends in the end (generally) on the performance of the underlying business. A consolidation will not solve EPY's problems but it might prove helpful if the company were to start to announce some good news for a change...
Without positive news flow the price will simply continue to drift downwards
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