9th Mar 2015 10:28
LONDON (Alliance News) - Irish engineering firm Mincon Group PLC proposed a maiden final dividend as it posted a small decline in pretax profit for 2014, saying it had delivered a strong performance "despite the downturn in the mining industry", and announced the departure of its chief executive.
Kevin Barry will be stepping down as chief executive, although Mincon said he will continue in the role until a successor is selected.
The company posted a pretax profit of EUR11.2 million, down from EUR12.5 million in 2013, as a rise in revenue to EUR54.5 million was offset by higher operating costs.
Mincon proposed a maiden final dividend of 1 euro cent, taking its total dividend for the year to 2 euro cents.
It cited the decline in commodity prices as having hit the global exploration and mining market. It also noted the devaluation of key currencies in which it trades, including the Australian dollar and South African rand. Around 50% of Mincon's revenue is generated in these currencies, and Mincon said currency movements reduced revenue by EUR2.3 million.
The company said that in the fourth quarter of 2014 it had seen a "marginal" improvement in sales compared to the previous quarter, however, this came against a background of increased pressure on prices. It expects the factors driving its revenue and margins in 2015 to remain consistent with 2014, and said volatility in currency markets and the weakness in metal prices remains a concern.
"We are confident that the company with the best products will emerge from the current downturn in the mining industry in the strongest position," said Barry in a statement.
Shares in Mincon are trading up 1.2% at 44.52 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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