Mincon revenue ahead of forecasts
Irish mining equipment firm Mincon's operating profit increased by 2pc last year to €10.1m, as it beat analyst expectations with an 8pc rise in revenue to €76.1m.
It said sales of third-party products jumped 13pc to €19.8m last year, while sales of its own products rose 7pc to €56.3m. The improved figures underscore a wider improvement in the resources sector as commodity prices rise. Ceo Joe Purcell said it had "taken stock" in 2016 and set "aggressive" growth objectives.
"There has been a tone change in the market in 2016, the prices of commodities are on the rise, the companies in our sector speak with a new confidence and enthusiasm, and we see early evidence of renewed interest in reopening and developing business," he said. "We also see substantial investment in sectors in which we are only peripherally involved to date, and in which we believe we should deliver an effective set of new products."
Mr Purcell added that Mincon has been developing a new product category and is planning a soft release. But the company also warned on the effects of price pressure and competition.
Colin Sheridan, an analyst with Davy Stockbrokers, said the industrial engineering sector, particularly mining-related stocks, appears to be exiting a period of weak markets. "The trend for demand is now towards the upside again, and Mincon remains well placed to take advantage of this," he said.
Mincon floated on the stock market in 2013. Its shares were trading as much as 4.5pc lower yesterday at 85 cent, valuing the company at €179m.