23rd Mar 2020 11:45
(Alliance News) - Drilling engineer Mincon Group PLC on Monday described 2019 as a "significant" step forward, with revenue up but profit down.
Shannon, Ireland-based Mincon's revenue climbed 2.5% to EUR120.7 million. From Mincon products it was up 0.5% to EUR100.8 million, but from third-party products revenue climbed 15% to EUR19.9 million.
Pretax profit fell 13% to GBP14.2 million. Excluding exceptional items, pretax profit was down 29% to GBP11.2 million.
Mincon is paying a final dividend for 2019 of 1.05 euro cents. This takes the year's total to 2.10 cents, flat yearly.
Mincon said the product mix contributed to the lower earnings, but there were still a number of "very significant" positive developments for the firm during the year. Americas revenue was up 57% after the company won some construction and mining contracts.
A review was started at the beginning of 2019 due to profit not meeting expectations. Amongst other things, Mincon split operations into four geographies and also sold off two businesses that were not considered core, in Sweden and South Africa.
"Although these annual results overall show only minor revenue growth at a headline level, this was not the case in all markets and industry segments in which we operate. Last year marked a concerted push into the construction industry for the group, and a strong performance in the Americas grew our market share in that region," said Mincon.
"Our work on filling out our product range and expanding our geographic support also saw Mincon win several large, direct-supply mining contracts."
Chief Executive Joseph Purcell said growth in the first quarter of 2020 was "good", with further contracts won in the Americas.
"The Mincon Group is monitoring the Covid-19 global pandemic and is taking the advice of local governments in locations where we have a physical presence. The group has implemented an international travel ban within the group to all employees for their own safety," Purcell continued.
"Our sales departments have been in regular contact with our customers and are working with our factories to give more flexibility on shipping products. We are conscious of the potential impact the Covid-19 virus might have on future cashflow requirements. We will continue to monitor and evaluate its impact on the business, and where necessary, we will take appropriate steps to limit any personnel and business risks if that might arise."
By George Collard; [email protected]
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