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Irish drilling equipment maker Mincon sees its performance boosted by acquisition

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Mincon drilling equipment in use

Mincon drilling equipment in use

Mincon drilling equipment in use

Irish drilling equipment maker Mincon saw its performance in the first three months of 2020 boosted by the purchase of Finland's Lehti earlier this year.

The company paid €8m for Lehti in January.

Revenue at Mincon increased by 4pc year-on-year in the three months to 31 March, while its gross margin rose to 35.2pc from 33.6pc, according to a trading update.

Mincon said the acquisition resulted in it achieving a better consolidated gross margin.

Meanwhile, the Covid-19 pandemic is impacting on certain operations and markets, however in most of the countries where Mincon is active the factories and related customer sites are regarded as critical and remain open.

In addition, the company said its order book generally “remains steady.”

However, as the impact and duration of the pandemic remains uncertain, Mincon has put in place additional lines of credit with its banking partners in different regions where it is felt appropriate to do so.

“We have not drawn on any of this additional credit, but it is available to us if needed in the future. Our balance sheet remains very strong, and we have not experienced any losses or any material effects on the inflow of debtor payments,” Mincon said.

Mincon was founded by Patrick Purcell in 1977 in Shannon. It was floated on the stock market in 2013.

The Purcells today still own around 57pc of the business, which develops and manufactures hard-rock drilling tools for mining and exploration.

Mincon made the drill that helped free 33 trapped miners in Chile in 2010.

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