Mincon Group Plc Q3 Trading Update (7594E)
November 01 2022 - 2:00AM
UK Regulatory
TIDMMCON
RNS Number : 7594E
Mincon Group Plc
01 November 2022
MINCON GROUP PLC
("Mincon" or the "Group")
Q3 2022 TRADING UPDATE
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 consumable products, today
provides a trading update for the 9 months to 30th September
2022.
The very strong revenue growth reported in the Group's half year
results to 30 June 2022 has continued in the past quarter, and
revenues for the first nine months are 25% ahead of 2021. Our
revenue growth has been mostly organic, supported by currency
tailwinds, price increases and some contribution from acquisitions.
The construction industry has experienced the highest level of
growth, though it is pleasing to see double digit growth in mining
revenue, the Group's largest industry, and this is when we exclude
the positive currency tailwinds. We also experienced positive
growth in waterwell/geothermal industry revenues during the first
nine months of the year.
During the past quarter we made significant progress in reducing
our order backlog. This will facilitate production and logistics
planning, and in particular enable us to significantly reduce air
freight from our factories to our customer centres in the final
quarter.
We introduced price increases in H1 2022 across all markets and
regions of the Group. While the effect of these in the past quarter
has improved margins compared to the first half of 2022, they have
been offset to some extent by higher energy prices in our factories
and energy related surcharges on raw materials. Nevertheless, we
remain positive about achieving an improved margin percentage for
the second half of this year.
During October, we were pleased to have commissioned new heat
treatment technology in Shannon, the Group's largest factory. This
new technology will significantly reduce energy consumption in this
critical process which will serve to mitigate the higher fuel
prices. We remain steadfastly committed to continuing the search
for new technologies to further reduce our overall energy
consumption.
The Group's strategy for improved technologies for the
industries, and thus better margins in the long-term for Mincon,
took a positive step forward during October when commercial
drilling of our Greenhammer system commenced with a significant
customer in a large gold mine in Western Australia.
Joe Purcell, CEO of Mincon, commented:
"I'm pleased to report that Mincon has managed to negotiate a
challenging market environment and achieve further growth in the
third quarter. In addition, the first commercial drilling with our
Greenhammer system with a customer in Australia marks another
significant milestone, and I look forward to the system
demonstrating its superior capabilities in the months ahead. We are
confident that the Greenhammer system will be a step change in
terms of technology and efficiency in the hard rock mining
environment."
Ends
1(st) November 2022
For further information please contact
Mincon Group plc
Joe Purcell - Chief Executive Officer Tel: +353 (61) 361 099
Mark McNamara - Chief Financial Officer
Davy Corporate Finance (Nominated Adviser, Euronext Growth
Listing Sponsor and Joint Broker)
Anthony Farrell
Tel: +353 (1) 679 6363
Daragh O' Reilly
Shore Capital (Joint Broker)
Malachy McEntyre
Tel: +44 (0) 20 7408 4090
Mark Percy
Daniel Bush
Forward looking statements
Any forward-looking statements made in this document represent
the Board's best judgment as to what may occur in the future.
However, the Group's actual results for the current and future
financial periods and corporate developments will depend on a
number of economic, competitive and other factors, some of which
will be outside the control of the Group. Such factors could cause
the Group's actual results for future periods to differ materially
from those expressed in any forward-looking statements included in
this announcement.
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