Mincon Group To Focus On Overheads After Strong 2018 Growth

LONDON (Alliance News) - Irish rock drilling equipment maker Mincon Group PLC on Tuesday reported strong growth in product sales, with organic performance also doing well.

For 2018, Mincon's revenue was EUR117.7 million, 21% higher year-on-year.

Own-product revenue climbed 34% to EUR100.3 million, and organically by 10%. Mincon's revenue from the sale of third-party products dipped 22% to EUR17.4 million, however.

This fall, Mincon said, was mainly due to drill pipe supplies now coming from inside the group following its EUR8 million Driconeq acquisition, completed in March 2018.

Pretax profit for 2018 was GBP16.3 million, from GBP12.6 million, a rise of 28%. Excluding exceptional items, pretax profit was GBP15.7 million, up from GBP12.7 million.

Mincon is paying a 1.05 euro cent dividend, the same as its interim, giving 2.1 cents for 2018. In 2017, Mincon returned 2.05 cents.

Driconeq, Mincon said, is a "great fit" for the company but will not likely generate much profit in its first year, but will do going into 2019.

Commenting on 2019 so far, Chief Executive Joseph Purcell said: "Trading in the new year to date has been fitful and flat.

"However we have significant opportunities to realise over the coming months, including the roll out in construction piling and large hammers and the commercialisation of the Greenhammer systems."

Overheads will be reviewed going ahead, Purcell added, and the plan is to move back into cash generation after a period of very strong growth.

Shares were down 4.1% on Tuesday morning at a price of 105.00 pence each.

Mincon Grp