Final Results

Mincon Group plc

("Mincon" or the "Group")

2025 Full Year Financial Results

Mincon Group plc (Euronext: MIO AIM:MCON), the Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products, announces its results for the year ended 31 December 2025.

Financial Highlights

1 The Group took the decision to close its Mincon Carbide businesses during the year ended 31 December 2024 and dispose of its assets. The results of these operations have been re-presented as discontinued operations in 2024 & 2025. See note 9 for further detail.

· Revenue: 2025 Group revenue of €148.7 million, an increase of 2% versus 2024.

§ Construction revenue increase of 14%, now our largest industry, with North American construction returning to growth as previously delayed projects commenced.

§ Mining revenue contraction of 9%, reflecting performance in certain locations as we undertake a strategic realignment of our customer offering in those locations on commoditised products.

§ Waterwell/geothermal industry remained subdued, however revenue increased slightly, by 1%, due to the well-established customer base in the geothermal industry in Northern Europe.

· EBITDA: 2025 EBITDA from continuing operations was approximately €19.3 million, up 19% on 2024.

§ Benefits realised from the Group's review of it's operations, gained momentum over the course of 2025 contributing to the improved EBITDA margin of 13.0% (2024: 11.2%).

§ Iimprovements in the Group's raw material supply chain enhanced margins, with raw material costs decreasing by 4% as a proportion of Mincon-manufactured revenue in 2025.

§ Large construction projects also contributed to the recovery of profit margins in 2025

· Discontinued operations: The Group's discontinued operations in 2024 and 2025 included selling and closing the former carbide production facility in Sheffield, which has also supported margin growth.

· Capital investment: Commissioned €3 million in capital equipment, with the investment focused on ongoing investment in automation and replacing older high-maintenance equipment.

· HIT System / (Greenhammer): Signed 3-year exclusive collaboration agreement with Epiroc in September 2025 to commercialise the system.

· Working capital: the increase in 2025 minaly related to the build up of inventory to service large construction proejects that began in Q4 2025.

· Dividend: Final dividend of 1.05c per ordinary share recommended by the Board, subject to approval at the AGM, taking the total dividend for 2025 to 2.10c per ordinary share (2024: 2.10c per ordinary share).

· Outlook: We anticipate continued growth in 2026, driven in part by our sustained investment and development in IP over recent years, along with continued growth built on our proven success in large scale construction projects. Additionally, the cost reductions achieved in production are expected to further enhance our financial performance in 2026.

Geographic Markets

Revenue in the Americas constitutes the largest share among our regions and increased by 6% in 2025, primarily, driven by growth of 12% in North America. The biggest increase in our revenue in North America was due to project wins in construction. We finished out the year in a strong position, and this has been further strengthened by the commencement of projects that were previously delayed. We believe our strong product offering, backed up by product availability and onsite support, remains a key differentiator supporting growth in this market. We are also seeing good revenue growth in mining in North America.

The tariff environment and cost inflation in the US remains a challenge to deal with and we are working closely with our customers to explain our position and pass on price increases to try and mitigate these cost pressures.

Europe Middle East (EME) is our next largest region in terms of revenue and that increased by 3% in 2025 over 2024. The notable features of this market were the sluggish conditions within the geothermal industry in Northern Europe as well as input cost inflation which was managed during the year. The contraction in revenue in Northern Europe was offset by revenue growth in Central Europe and the Middle East through our distribution networks there.

Our revenues in the Africa region increased by 13% which was helped by a construction project win in the DRC and supplied during the year. This project is now complete and is a good case study to enable us to win more opportunities in the region. In mining we have seen a return to revenue growth in West Africa which has been driven by key gold mining customers returning to buy from us due to product performance, availability and support.

Finally, revenues in the Australia Pacific region (APAC) decreased by 28% during the year. We are currently restructuring our business in the region to ensure that it is better positioned to deal with the market realities there. This ongoing work will stabilise the business and give us the opportunity to pursue more profitable revenue targets that exist in this important region for the Group.

Chief Executive's Review:

Joe Purcell said: "I am very pleased to report that we concluded the year with significant enhancement in operating profit. The cost-reduction initiatives implemented throughout the year have yielded a substantial increase in EBITDA over the prior year, and these efforts are expected to continue moving forward.

We are convinced that the global industries we are operating in are fundamental to the push toward electrification. The requirement to rapidly build out new electric generating capacity is placing enormous pressure on supply chains around the world. The lead times on equipment suitable for new fossil fuel power plants are hugely extended. As a result, there is a growing realisation that renewable energy like solar and wind, represent a quicker route to new capacity and as such is being increasingly installed globally.

Mincon is seeking to capitalise on this opportunity. The Group has a track record of investing in our IP and despite difficult market conditions over recent years, we have continued this investment. During 2025, we were pleased to see our Subsea project continue to make a lot of progress, with a highlight being the successful installation of a subsea anchor which is a significant step in our journey toward certification. The system is now well understood by several key stakeholders and our Subsea Micropiles partner is working on a number of commercial opportunities in the offshore wind space as well as other offshore construction opportunities.

In mining, the consolidation that we are seeing in copper mining reflects the pressure to increase capacity to supply for the electrification push required. This increased demand is also present for battery metals. The standout increase has been the gold price movement and our existing business in this sector is beginning to increase with good wins in West Africa and North America as well as a growing opportunity in the Middle East.

On business development initiatives, we were also pleased to sign our collaboration agreement with Epiroc to commercialise our HIT system (formerly Greenhammer). For Mincon, we have addressed the biggest hurdle to widescale adoption with ready access to a market leading rig platform which perfectly suits the system. For Epiroc, they have a performance advantage over competing rig manufacturers which will enable them to secure and grow market share for single pass drilling solutions in the surface mining market. This can be through a combination of converting the existing fleet in operation today and delivering new bespoke systems that further push the performance boundaries. In North America alone, taking into account the push to expand copper mining output, we believe there exists a transformational opportunity for both Mincon and Epiroc.

Therefore, if we consider the markets that we serve in construction, mining and renewables, we see increasing demand for both the efficient product range that Mincon offers today and, as the ramp up continues and costs and emissions come under the microscope, the new products that we are developing for the future.

On a personal note, I would like to acknowledge the support that I, and the Purcell family, have received following the untimely passing of our founder, Paddy Purcell. It was certainly a shock for us all and something that will take some time to adjust to.

We now have a Company that I believe is on the cusp of something truly wonderful that Paddy would have been so proud of and, I for one, will leave no stone unturned to ensure that we deliver on the promise that we have worked so hard to develop since Paddy founded the business. In discussions that I have had with people at all levels in our business, this ambition is something that is widely shared amongst our Group and I look forward to realising a brighter future for Mincon." 

10 March 2026

For further information, please contact:

Mincon Group plc Tel: +353 (61) 361 099

Joe Purcell CEO

Mark McNamara CFO

Tom Purcell COO

Davy Corporate Finance

(Nominated Adviser, Euronext Growth Listing Sponsor and Joint Broker) Tel: +353 (1) 679 6363

Anthony Farrell 

Daragh O'Reilly

Shore Capital (Joint Broker) Tel: +44 (0) 20 7408 4090

Malachy McEntyre

Mark Percy

Daniel Bush

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2025

The notes on pages 79 to 114 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2025

The notes on pages 79 to 114 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2025

The notes on pages 79 to 114 are an integral part of these consolidated financial statements.

Approved by the Board and signed on it's behalf:

Paul Lynch Joseph Purcell

Chairman Chief Executive Officer 10 March 2026

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2025

The notes on pages 79 to 114 are an integral part of these consolidated financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2025

The notes on pages 78 to 114 are an integral part of these consolidated financial statements. See note 19 for explanation of movements in reserve balances.

Notes to the Consolidated Financial Statements

1.  Description of business

The consolidated financial statements of Mincon Group plc (also referred to as "Mincon" or "the Group") comprises the Company and its subsidiaries (together referred to as "the Group"). The companies registered address is Smithstown Industrial Estate, Smithstown, Shannon, Co. Clare, Ireland.

The Group is an Irish engineering Group, specialising in the design, manufacturing, sale and servicing of rock drilling tools and associated products. Mincon Group Plc is domiciled in Shannon, Ireland.

On 26 November 2013, Mincon Group plc was admitted to trading on the Euronext Growth and the Alternative Investment Market (AIM) of the London Stock Exchange.

2.  Basis of preparation

These consolidated financial statements have been prepared in accordance with the IFRS Accounting Standards as adopted by the European Union (IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) and endorsed by the EU.

The Group's financial statements consolidate those of the parent company and all of its subsidiaries as of 31 December 2025. All subsidiaries have a reporting date of 31 December.

The accounting policies set out in Note 3 have been applied consistently in preparing the Group and Company financial statements for the years ended 31 December 2025 and 31 December 2024.

The Group and Company financial statements are presented in Euro, which is the functional currency of the Company and also the presentation currency for the Group's financial reporting. Unless otherwise indicated, the amounts are presented in thousands of Euro. These financial statements are prepared on the historical cost basis.

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The judgements, estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ materially from these estimates. The areas involving a high degree of judgement and the areas where estimates and assumptions are critical to the consolidated financial statements are discussed in Note 3.

The Directors believe that the Group has adequate resources to continue in operational existence for the foreseeable future and that it is appropriate to continue to prepare our consolidated financial statements on a going concern basis.

3. Material accounting principles and significant accounting estimates and judgements

3. Material accounting principles and significant accounting estimates and judgements (continued)

Operating expenses

Operating expenses are recognised in profit or loss as the service is utilised or incurred.

Earnings per share

Profit or loss from discontinued operations

A discontinued operation is a component of the Group that either has been disposed of, or is classified as held for sale. A discontinued operation represents a separate major line of the business. Profit or loss from discontinued operations comprises the post-tax profit or loss of discontinued operations and the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal group(s) constituting the discontinued operation.

Taxation

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.

Current tax assets and liabilities are offset only if certain criteria are met.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

· business combination and that affects neither accounting nor taxable profit or loss;

· temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

· taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if certain criteria are met.

Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.

3. Material accounting principles and significant accounting estimates and judgements (continued)

Leases (continued)

(i) As a lessee

At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an

estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

(ii) As a lessor

At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset.

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Inventories and capital equipment

Inventories and capital equipment (rigs) are valued at the lower of cost or net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. The cost of inventories is based on the first-in, first-out principle and includes the costs of acquiring inventories and bringing them to their existing location and condition. Inventories manufactured by the Group and work in progress include an appropriate share of production overheads based on normal operating capacity. Inventories are reported net of deductions for obsolescence.

3. Material accounting principles and significant accounting estimates and judgements (continued)

Intangible Assets and Goodwill

Goodwill

The Group accounts for acquisitions using the purchase accounting method as outlined in IFRS 3 Business Combinations. Goodwill represents the future economic benefits arising from a business combination that are

not individually identified and separately recognised. Goodwill is not amortised and is tested annually.

Intangible assets

Expenditure on research activities is recognised in profit or loss as incurred.

Development expenditure is capitalised only if the Group can demonstrate if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in the profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.

Acquired IP which has been obtained at a cost that can be measured reliably, and that meets the definition and recognition criteria of IAS 38, will be accounted for as an intangible asset.

Internally developed intangible assets are recognised post the development phase once the company has assessed the development phase is complete and the asset is ready for use. Internally generated assets have an finite life. They will be amortised over a fifteen-year period on a straight-line basis. Currently there is eleven years and nine months remaining on the amortisation.

Foreign Currency

Functional and presentation currency

The consolidated financial statements are presented in Euro currency units, which is also the functional currency of the parent company.

Foreign currency transactions and balances

Transactions in foreign currencies (those which are denominated in a currency other than the functional currency) are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the foreign exchange rate at the statement of financial position date. Exchange gains and losses related to trade receivables and payables, other financial assets and payables, and other operating receivables and payables are separately presented on the face of the income statement.

Exchange rate differences on translation to functional currency are reported in profit or loss, except when reported in other comprehensive income for the translation of intra-group receivables from, or liabilities to, a foreign operation that in substance is part of the net investment in the foreign operation.

Exchange rates for major currencies used in the various reporting periods are shown in Note 22.

Translation of accounts of foreign entities

The assets and liabilities of foreign entities, including goodwill and fair value adjustments arising on consolidation, are translated to Euro at the exchange rates ruling at the reporting date. Revenues, expenses, gains, and losses are translated at average exchange rates, when these approximate the exchange rate for the respective transaction. Foreign exchange differences arising on translation of foreign entities are recognised in other comprehensive income and are accumulated in a separate component of equity as a translation reserve.

On divestment of foreign entities, the accumulated exchange differences, are recycled through profit or loss, increasing or decreasing the profit or loss on divestments.

Business combinations and consolidation

The consolidated financial statements include the financial statements of the Group and all companies in which Mincon Group plc, directly or indirectly, has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. 

The consolidated financial statements have been prepared in accordance with the acquisition method.

3. Material accounting principles and significant accounting estimates and judgements (continued)

Business combinations and consolidation (continued)

According to this method, business combinations are seen as if the Group directly acquires the assets and assumes the liabilities of the entity acquired. At the acquisition date, i.e., the date on which control is obtained, each identifiable asset acquired, and liability assumed is recognised at its acquisition-date fair value.

Consideration transferred is measured at its fair value. It includes the sum of the acquisition date fair values of the assets transferred, liabilities incurred to the previous owners of the acquiree, and equity interests issued by the Group. Deferred consideration is initially measured at its acquisition-date fair value. Any subsequent change in such fair value is recognised in profit or loss, unless the deferred consideration is classified as equity. In that case, there is no remeasurement and the subsequent settlement is accounted for within equity. Deferred consideration arises in the current year where part payment for an acquisition is deferred to the following year or years.

Transaction costs that the Group incurs in connection with a business combination, such as legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred.

Goodwill is measured as the excess of the fair value of the consideration transferred, the amount of any non-controlling interest in the acquiree, and the fair value of the Group's previously held equity interest in the acquiree (if any) over the net of acquisition-date fair values of the identifiable assets acquired and liabilities assumed. Goodwill is not amortised but tested for impairment at least annually.

Non-controlling interest is initially measured either at fair value or at the non-controlling interest's proportionate share of the fair value of the acquiree's identifiable net assets. This means that goodwill is either recorded in "full" (on the total acquired net assets) or in "part" (only on the Group's share of net assets). The choice of measurement basis is made on an acquisition-by-acquisition basis.

Earnings from the acquirees are reported in the consolidated income statement from the date of control.

Intra-group balances and transactions such as income, expenses and dividends are eliminated in preparing the consolidated financial statements. Profits and losses resulting from intra-group transactions that are recognised in assets, such as inventory, are eliminated in full, but losses are only eliminated to the extent that there is no evidence of impairment.

Property, plant and equipment

Items of property, plant and equipment are carried at cost less accumulated depreciation and impairment losses. Cost of an item of property, plant and equipment comprises the purchase price, import duties, and any cost directly attributable to bringing the asset to its location and condition for use. The Group capitalises costs on initial recognition and on replacement of significant parts of property, plant and equipment, if it is probable that the future economic benefits embodied will flow to the Group and the cost can be measured reliably. All other costs are recognised as an expense in profit or loss when incurred.

Depreciation

Depreciation is calculated based on cost using the straight-line method over the estimated useful life of the asset. The following useful lives are used for depreciation:

Years

Buildings 20-30

Plant and equipment 3-10

The depreciation methods, useful lives and residual values are reassessed annually. Land is not depreciated.

Right of use assets are depreciated using the straight-line method over the estimated useful life of the asset being the remaining duration of the lease from inception date of the asset. The depreciation methods, useful lives and residual values are reassessed annually.

Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss either within other income or other expenses

3. Material accounting principles and significant accounting estimates and judgements (continued)

Financial Assets and Liabilities

Classification and initial measurement of financial assets financial liabilities.

Financial assets and liabilities are recognised at fair value when the Group becomes a party to the contractual provisions of the instrument. Purchases and sales of financial assets are accounted for at trade date, which is the day when the Group contractually commits to acquire or dispose of the assets. Trade receivables are recognised once the responsibility associated with control of the product has transferred to the customer. Liabilities are recognised when the other party has performed and there is a contractual obligation to pay. A financial asset and

a financial liability are offset and the net amount presented in the statement of financial position when there is a legally enforceable right to set off the recognised amounts and there is an intention to either settle on a net basis or to realise the asset and settle the liability simultaneously.

The classification is determined by both:

• the entity's business model for managing the financial asset, and

• the contractual cash flow characteristics of the financial asset.

Subsequent measurement of financial assets and financial liabilities

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):

· they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows, and

· the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Financial liabilities at amortised cost

Subsequently, financial liabilities are measured at amortised cost using the effective interest method.

Derecognition (fully or partially) of a financial liabilities occurs when the rights to receive cash flows from the financial instruments expire or are transferred and substantially all of the risks and rewards of ownership have been removed from the Group. Financial liabilities are assessed at each reporting date. The Group derecognises (fully or partially) a financial liability when the obligation specified in the contract is discharged or otherwise expires.

Impairment of financial assets

Financial assets are assessed from initial recognition and at each reporting date to determine whether there is a requirement for impairment. Financial assets require there expected lifetime losses to be recognised from initial recognition.

IFRS 9's impairment requirements use forward-looking information to recognise expected credit losses - the 'expected credit loss (ECL) model'. Instruments within the scope of the requirements included loans and other debt-type financial assets measured at amortised cost, trade and other receivables.

The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

· financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk ('Stage 1'); and

· financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low ('Stage 2').

'Stage 3' would cover financial assets that have objective evidence of impairment at the reporting date.

'12-month expected credit losses' are recognised for the first category (i.e. Stage 1) while 'lifetime expected credit losses' are recognised for the second category (i.e. Stage 2).

Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.

3. Material accounting principles and significant accounting estimates and judgements (continued)

Financial Assets and Liabilities (continued)

Trade and other receivables

The Group makes use of a simplified approach in accounting for trade and other receivables and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.

The Group assesses impairment of trade and other receivables on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due.

Borrowing costs

All borrowing costs are expensed in accordance with the effective interest rate method.

Equity

Shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effect.

Financial instruments carried at fair value: Deferred consideration

Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. These are set amounts detailed in each contract.

Finance income and expenses

Finance income and expense are included in profit or loss using the effective interest method.

Contingent liabilities

A contingent liability is a possible obligation or a present obligation that arises from past events that is not reported as a liability or provision, as it is not probable that an outflow of resources will be required to settle the obligation or that a sufficiently reliable calculation of the amount cannot be made.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less.

Non-current assets and liabilities classified as held for sale and discontinued operations

Non-current assets classified as held for sale are presented separately and measured at the lower of their carrying amounts immediately prior to their classification as held for sale and their fair value less costs to sell. However, some held for sale assets such as financial assets or deferred tax assets, continue to be measured in accordance with the Group's relevant accounting policy for those assets. Once classified as held for sale, the assets are not subject to depreciation or amortisation. Any profit or loss arising from discontinued operation or its remeasurement to fair value less costs to sell is presented in the profit or loss from discontinued operations.

Equity, reserves and dividend payments

Share capital represents the nominal (par) value of shares that have been issued. Share premium includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.

Retained earnings includes all current and prior period retained profits and share-based employee remuneration.

Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been approved in a general meeting prior to the reporting date.

Provisions

A provision is recognised in the statement of financial position when the Group has a legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the outflow can be estimated reliably. The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the reporting date. If the effect of the time value of money is material, the provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the liability. 

3. Material accounting principles and significant accounting estimates and judgements (continued)

Provisions (continued)

A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan and the restructuring has either commenced or been announced publicly. Future operating losses are not provided for.

Defined contribution plans

A defined contribution retirement benefit plan is a post-employment benefit plan under which the Group pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution retirement benefit plans are recognised as an employee benefit expense in profit or loss when employees provide services entitling them to the contributions.

Share-based payment transactions

The Group operates a long-term incentive plan (LTIP) which allows the Company to grant Restricted Share Awards ("RSAs") to the Executive Management Team and senior management. All schemes are equity settled arrangements under IFRS 2 Share-based Payment.

The grant-date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. It is reversed only where entitlements do not vest because all

non-market performance conditions have not been met or where an employee in receipt of share entitlements leaves the Group before the end of the vesting period and forfeits those options in consequence.

Significant accounting estimates and judgements

The preparation of financial statements requires management's judgement and the use of estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the prevailing circumstances. Actual results may differ from those estimates. The estimates and assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which they are revised and in any future periods affected.

Following are the estimates and judgements which, in the opinion of management, are significant to the underlying amounts included in the financial reports and for which there is a significant risk that future events or new information could entail a change in those estimates or judgements.

Deferred consideration (Note 22)

The deferred consideration payable represents management's best estimate of the fair value of the amounts that will be payable, discounted as appropriate using a market interest rate. The fair value was estimated by assigning probabilities, based on management's current expectations, to the potential pay-out scenarios. The fair value of deferred consideration is primarily dependent on the future performance of the acquired businesses against predetermined targets and on management's current expectations thereof.

Climate-related matters

The long-term consequences of climate changes on financial statements are difficult to predict and require entities to make significant assumptions and develop estimates. Consistent with the prior year, as at 31 December 2025 the Group has not identified significant risks induced by climate changes that could negatively and materially affect the estimates and judgements currently used in the Group's financial statements. Management continuously assesses the impact of climate-related matters.

Goodwill (Note 12)

The initial recognition of goodwill represents management' best estimate of the fair value of the acquired entities value less the identified assets acquired.

During the annual impairment assessment over goodwill, management calculate the recoverable value of the group using their best estimate of the discounted future cash flows of the group. The fair values were estimated using management's current and future projections of the Mincon Group's performance as well as appropriate data inputs and assumptions.

3. Material accounting principles and significant accounting estimates and judgements (continued)

Significant accounting estimates and judgements (continued)

Useful life and residual values of Intangible Assets (Note 12)

Distinguishing the research and development phase, determining the useful life, and deciding whether the recognition requirements for the capitalisation of development costs of new projects are met all require judgement. These judgements are based on historical experience and various other factors that are believed to be reasonable under the prevailing circumstances.

After capitalisation, management monitors whether the recognition requirements continue to be met and whether there are any indicators that capitalised costs may be impaired.

Trade and other receivables (Note 15)

Trade and other receivables are included in current assets, except for those with maturities more than 12 months after the reporting date, which are classified as non-current assets. The Group estimates the risk that receivables will not be paid and provides for doubtful debts in line with IFRS 9.

The Group applies the simplified approach to providing for expected credit losses (ECL) permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables and considered at each reporting date. Loss rates are calculated using a "roll rate" method based on the probability of a receivable progressing through successive chains of non-payment to write-off.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. Where recoveries are made, these are recognised in the Consolidated Income Statement.

4. Revenue

In the following table, revenue is disaggregated between Mincon manufactured product and product that is purchased outside the Group and resold through Mincon distribution channels.

The Group's revenue disaggregated by primary geographical markets are disclosed in Note 5.

The Group recognised contract liability amounting to €2 million as at 31 December 2025 (2024:€2 million) which represent customer payments received in advance of performance that are expected to be recognised within the next financial year. Contract liability is recorded under Other accruals and other liabilities (Note 16).

5. Operating Segment

The CODM assesses operating segment performance based on operating profit. Segment revenue for the year ended 31 December 2025 of €148.7 million (2024: €145.9 million) is wholly derived from sales to external customers.

Entity-wide disclosures

The business is managed on a worldwide basis but operates manufacturing facilities and sales offices in Ireland, Sweden, Finland, South Africa, Western Australia, the United States and Canada and sales offices in ten other locations including Eastern Australia, South Africa, France, Spain, Namibia, Sweden, Chile and Peru. In presenting information on geography, revenue is based on the geographical location of customers and non-current assets based on the location of these assets.

5. Operating Segment (continued)

Revenue by region (by location of customers):

(1) Total revenue in 2025 & 2024 includes revenue from discontinued operations.

During 2025, Mincon had sales in the USA of €39.4 million (2024: €33.4 million), Canada of €17.5 million (2024: €16.9 million) and Sweden of €15.0 million (2024: €13.3 million), these individually contributed to more than 10% of the entire Group's sales for 2025.

During 2025, Mincon held non-current assets (excluding deferred tax assets) in Ireland of €21.2 million (2024: €23.2 million), in the USA of €8.9 million (2024: €12.2 million) these separately contributed to more than 10% of the entire Group's non-current assets (excluding deferred tax assets) for 2025.

During 2025, Mincon held non-current liabilities (excluding deferred tax liabilities) in Ireland of €10.9 million (2024: €13.6 million), this contributed to more than 10% of the entire Group's non-current liabilities (excluding deferred tax liabilities) for 2025.

6. Cost of Sales and operating expenses

Included within cost of sales and operating costs were the following major components:

(1) Total cost of sales in 2025 & 2024 includes cost of sales from discontinued operations.

The Group invested approximately €4.5 million on research and development projects in 2025 (2024: €3.8 million) €4.5 million of this has been expensed in the period (2024: €3.8 million).

Operating costs

(1) Total other operating costs in 2025 & 2024 includes other operating costs from discontinued operations.

The Group recognised €71,000 in Government Grants in 2025 (2024: €92,000). These grants differ in structure from country to country and they primarily relate to personnel costs.

7. Finance costs

(1) Total employee costs in 2025 & 2024 includes employee costs from discontinued operations.

Retirement benefit and Other Employee Benefit Plans

The Group operates various defined contribution retirement benefit plans. During the year ended 31 December 2025, the Group recorded €2.3 million (2024: €2.2 million) of expense in connection with these plans.

9. Non-Current Assets Held for Resale and Discontinued Operations

In 2025, the Group's Board of Directors decided to downsize the property used in our Australian manufacturing operations. As at 31 December 2025, the property owned by Mincon Rockdrills Australia PTY, amounting to €4.9 million, was in the process of being sold to a third party, hence, was reclassified to Non-current assets held for resale. This balance pertains to land and building (Note 13). The said sale was completed on 31 January 2026 for a total consideration of AUD$13 million (€7.4 million) (Note 28).

In 2024, the Group's Board of Directors made the decision to cease trading of its subsidiary Mincon Carbide in Sheffield, UK. All contracts with customers in Mincon Carbide were fulfilled and all inventory and portion of the property and equipment have been sold. As at 31 December 2024, few employees were still employed to execute outstanding administrative activities. The Group assessed that Mincon Carbide has ceased to be used and thus represents a discontinued operation as at the reporting period.

As at 31 December 2024, the property, plant and equipment owned by Mincon Carbide, amounting to €751,000, was in the process of being sold to a third party, hence, was reclassified to Non-current assets held for resale. This balance is made up of land and buildings of €740,000 and plant & equipment of €11,000 (Note 13). Apart from the property, plant and equipment, no other major classes of assets and liabilities of Mincon Carbide were classified as held for sale. The said sale on 17 January 2025 was completed for a total consideration of£1.8 million (€2.2 million). Gain on sale of property, plant and equipment amounting to €1.4 million was recognised in the 2025 consolidated statement of income. 

Cashflows generated by Mincon Carbide for the year ended 31 December 2025 and 2024 are as follows:

10. Statutory and other required disclosures

11.  Income tax

Tax recognised in income statement:

(1) Total income tax expense in 2025 & 2024 includes income tax from discontinued operations.

A reconciliation of the expected income tax expense is computed by applying the standard Irish tax rate to the profit before tax and the reconciliation to the actual income tax expense is as follows:

(1) Total income tax expense in 2025 & 2024 includes income tax from discontinued operations.

11.  Income tax (continued)

The Group's net deferred taxation asset was as follows:

Deferred taxation assets have not been recognised in respect of the following items:

12. Intangible assets and goodwill

Goodwill relates to the acquisition of the below companies, being the dates that the Group obtained control of these business:

· The remaining 60% of DDS-SA Pty Limited in November 2009

· The 60% acquisition of Omina Supplies in August 2014

· The 65% acquisition of Rotacan in August 2014

· The acquisition of ABC products in August 2014

· The acquisition of Ozmine in January 2015

· The acquisition of Mincon Chile in March 2015

· The acquisition of Mincon Tanzania in March 2015

· The acquisition of Premier in November 2016

· The acquisition of Rockdrill Engineering in November 2016

· The acquisition of PPV in April 2017

· The acquisition of Viqing July 2017

· The acquisition of Driconeq in March 2018

· The acquisition of Pacific Bit of Canada in January 2019

· The acquisition of Lehti Group in January 2020

· The acquisition of Rocdrill in May 2020

· The acquisition of Attakroc in June 2021

· The acquisition of Spartan Drilling Tools in January 2022

The Group accounts for acquisitions using the purchase accounting method as outlined in IFRS 3 Business Combinations.

The recoverable amount of goodwill has been assessed based on estimates of fair value less costs of disposal (FVLCD). The FVLCD valuation is calculated on the basis of a discounted cash flow ("DCF") model. The most significant assumptions within the DCF are weighted average cost of capital ("WACC"), tax rates and terminal value assumptions. Goodwill impairment testing did not indicate any impairment during any of the periods being reported. Four sensitivities are applied as part of the analysis considering the effects of changes in:

1) the WACC,

2) the EBITDA margin,

3) the long-term growth rate and

4) the level of terminal value capital expenditure.

The sensitivities calculate downside scenarios to assess potential indications of impairments due to changes in key assumptions. The results from the sensitivity analysis did not suggest that goodwill would be impaired when those sensitivities were applied.

12. Intangible assets and goodwill (continued)

The carrying amount of the CGU was determined to be lower than its fair value less costs of disposal by €8.4 million (2024: €9.0 million), giving management headroom and comfort in the above stated impairment assessment.

The key assumptions used in the estimation of the fair value less cost calculation were as follows:

The WACC calculation considers market data and data from comparable public companies. Peer group data was especially considered for the beta factor and assumed financing structure (gearing level). The analysis resulted in a discount rate range of 11.5% to 13.3% (2024: 12.5% to 14.6%). This results in a midpoint WACC being used of 12.43% (2024: 13.55%).

The Long term growth rate of 2.22% (2024: 2.35%) applied is based on a weighted average of the long term inflation rates of the countries in which Mincon generates revenues and earnings.

The budgeted EBITDA was based on expectations of future outcomes, taking account for past experience, adjusted for anticipated revenue growth as detailed in managements approved Budget. No EBITDA margin effect is assumed in the terminal value i.e. the budgeted EBITDA margin of 15.9% for 2028 (2024: 18% for 2027) is assumed in the Terminal Value calculation used to arrive at the FVLCD.

Terminal value capital expenditure assumes no balance sheet growth is assumed in the terminal value, capital expenditure is assumed to equal depreciation of €5.5 million (2024: €7.2 million).

The following table shows the amount by which the two assumptions below would need to change to individually for the estimated recoverable amount to be equal to the carrying amount.

13. Property, plant and equipment