25th Apr 2019 11:34
LONDON (Alliance News) - Irish engineer Mincon Group PLC on Thursday said despite quarterly revenue growth, profit has fallen behind the prior year.
For the three months to March, Mincon's revenue has risen 24%, but profit is down "slightly".
Mincon's gross margin was within budget, with profit affected by increased activity from a new distributor and Driconeq Group, both of which are lower margin.
Mincon bought Swedish firm Driconeq for EUR8 million in March 2018.
Revenue in the quarter caught up with the order book, Mincon said, with additional capacity now achieved.
"We continue our strategy of improving our product mix by manufacturing what we sell, where this provides commercial advantage. This has resulted in Mincon product representing 86% of sales in the quarter compared to 81% last year and in the period under review our manufacturing capability has now built to a level where we are able to meet customer orders in a normal commercial timeframe," said Mincon.
"This allows us to focus on the efficiency of delivery and margins, and to reduce the extra overhead that had come into place to meet the last phase of growth, before we meet the service requirements of the new direct sales coming on stream through the rest of the year."
Mincon is targeting overhead savings of EUR3 million a year, which will initially bring higher costs.
Shares were untraded on Thursday, last quoted at a price of 103 pence each.
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