Monday 24 July 2017

Mincon sees sales rise to almost €33m but profits drop

Patrick Purcell, Founder and Non-Executive Director, Mincon, Joseph Purcell, Chief Technical Officer, Mincon, Kevin Barry, Chief Executive, Mincon and Thomas Purcell, Sales Director, Mincon.
Patrick Purcell, Founder and Non-Executive Director, Mincon, Joseph Purcell, Chief Technical Officer, Mincon, Kevin Barry, Chief Executive, Mincon and Thomas Purcell, Sales Director, Mincon.

Paul O'Donoghue

Irish rock drill maker Mincon saw both its profits and earnings per share fall in the six months to the end of June despite reporting revenue growth of 40pc.

Total group revenue at the Shannon-based firm increased to €32.7m compared to €23.4m in the same period in 2014. Sales of third party product made up €7.3m of that figure compared to €4.5m third party sales last year.

However pre-tax profits dropped from €5.5m to €4.5m while earnings per share fell from 0.021 cents to 0.017 cents.

Operating profits at the firm, whose products were used to reach the trapped Chilean miners in 2010, declined from €5.2m to €4.5m.

Chief executive Joe Purcell said that the company’s operating profit was impacted by one-time costs of €380,000 associated with “acquisitions and restructuring”.

He said that the company’s revenue growth of 40pc was largely driven by “additional revenue from acquisitions completed in the intervening period”.

He added: “In conjunction with a focus on integration of the businesses acquired, including cost discipline, we are in discussions with potential acquisition targets with a view to further extending the Group's product range.”

The company’s board has recommended the payment of an interim dividend of 1 cent per ordinary share, payable in September 2015.

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