7th Nov 2014 09:11
LONDON (Alliance News) - Mincon Group PLC on Friday said its revenue fell in the third quarter on the back of wider weakness in the mining and exploration sectors, as progress for trading in its newly-created entities remains slower than expected and sales of third party products also declined.
The Irish engineering group said revenue from its core manfactured products in the three months to the end of September fell 9% against the second quarter amid continued weakness in the mining and exploration sectors. In addition, the company's newly-established trading arms in Peru and Ghana are both performing below expectations.
Sales of third party products also were lower in the third quarter against the second, Mincon said, owing to a lack of high-value rigs in Southern Africa amid a continuing localisation of rigs in the region.
Mincon's gross margin and net margin for the year to date are stable at 47% and 19%, respectively, it said, and the group said its balance sheet remains strong at EUR41.2 million.
Mincon said the integration of its new acquisitions, including Rotacan in Canada, ABC Products in Australia and Omina Supplies in Namibia, is proceeding on schedule and it expects these to be accretive to net profit from the first quarter of 2015.
Kevin Barry, chief executive officer of Mincon, said the "cyclical weakness" in metal commodity prices and the devaluation of certain key currencies has impacted on its results in the year to date.
Mincon said its "is engaged in valuation discussions with a number of potential acquisition targets". It said acquisitions would be used to extend its product range and add new customers and new geographic markets.
Mincon shares were quoted down 9.7% in London Friday at 56.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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