2nd Apr 2014 12:09
LONDON (Alliance News) - Mincon Group PLC Wednesday posted an increase in pretax profit for 2013, despite revenue taking a hit from weakening currencies, as it improved margins and lowered administrative expenses.
The engineering group posted a pretax profit of EUR12.5 million, up from EUR13.2 million in 2012, despite seeing revenue decline to EUR52.3 million from EUR63.1 million, as it sales costs and administrative expenses dropped.
Revenue was hit by the weakening of the South African rand and Australian dollar. However, its gross margin percentage improved to 49% from 43% as it shifted its product mix and it did not have costs associated with closing its Canadian manufacturing facility in 2012.
Mincon noted that volatility in currency markets had hit its net profitability, which had led to a EUR1.3 million loss from the settlement and re-translation of monetary assets.
The company floated on AIM in November 2013, and is also listed on the ESM market of the Irish Stock Exchange.
Mincon noted that the decline in the price of precious metals, and weak demand for mining products had continued into 2014; additionally adverse weather in the Americas at the start of 2014 had led to a loss of a few weeks of trading.
Mincon was cautious in its outlook, for the global exploration and mining market, which it expects to continue to hit its Reverse Circulation product sales and third party product sales in the 2013.
It expressed optimism regarding its continued good margins, and said its confident it will achieve further progress during 2014, particularly in its flagship down-the-hole product.
Mincon also said it was considering a number of acquisition targets, and that it is at an advanced stage of negotiation on acquisitions that should extend it into new products and customers. It expects to secure one or more of these acquisitions in the current trading period, it said.
Shares in Mincon were trading down 7.2% at 78.50 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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