9th Mar 2016 09:58
LONDON (Alliance News) - Irish rock drilling engineer Mincon Group PLC on Wednesday said its pretax profit dipped in 2015 due to increased sales of lower-margin products and pricing pressures in other parts of the business.
Pretax profit for the group fell to EUR9.6 million from EUR11.2 million a year earlier, despite revenue increasing to EUR70.3 million from EUR54.5 million.
The revenue growth was helped by the strength of the US dollar against the euro, but gross margins fell to 40% from 43% a year earlier due to a 37% rise in third-party product sales, a lower-margin revenue stream for the company. This was further hurt by higher tungsten carbide sales, which also earn low margins, and pricing pressures on other products.
Mincon will pay a final dividend of 1 euro cent per share, taking its total payout to 2 cents, flat year-on-year.
"Mincon Group has delivered another strong performance in 2015 despite the current cyclical downturn in the mining industry and the challenges faced by certain markets that we serve," said Chief Executive Joe Purcell.
Mincon shares were untraded on Wednesday, having last traded at 49.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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