Mincon chief executive Kevin Barry retires after 30 years
Operating profits at Irish mining supplies firm Mincon tumbled 31pc last year to €10.3m as it continued to feel the impact of a challenging resources environment.
Revenue at the firm, which designs and manufactures rock drilling tools for the resources industry, rose 4pc to €54.5m.
Despite the profit decline, the results were in line with analyst expectations. Shares in Mincon, which made its stockmarket debut in 2013, dipped slightly yesterday to about 61 cent.
They've traded below their 87 cent flotation price for a number of months.
"The decline in the commodity prices of base and precious metals such as gold, iron ore and copper has had a major impact on the global exploration and mining market and has also been a factor in the significant devaluation of certain key currencies in which we trade, particularly the South African rand and the Australian dollar," said Mincon chief executive Kevin Barry.
Mr Barry announced he'll be retiring from the company after more than 30 years' service.
He joined in 1984 and was appointed chief executive in 1990.
Mr Barry insisted that the company's results demonstrated "robustness" in a tough market. "The exploration industry is cyclical in nature and therefore our focus has always been on the production mining and other market sectors such as waterwell, geothermal and construction drilling, which are less cyclical and provide a more stable platform for the long term success and growth of the business," he added.
Mincon's gross profit fell €2.2m to €23.6m, which represented a margin of 43pc compared to 49pc in 2013. The company said that reduction in gross profit was primarily attributable to currency devaluation and also a reduction in some sales coupled with pricing pressure.
The company is also continuing to pursue possible acquisitions.
Mincon made two acquisitions last year.
At the end of 2014, it had net cash of €41.6m.