Mincon engineering reports strong growth despite volatile currency markets

Shannon-based engineering services firm, Mincon has reported a strong third quarter despite the ongoing downturn in the mining industry.
Mincon engineering reports strong growth despite volatile currency markets

The company, which makes industrial drilling tools, yesterday said revenues for the third quarter amounted to €19.3m, up by 4% compared to the preceding quarter but ahead by 43% when measured on a year-on-year basis.

The company said that, while volatile currency markets still remain a concern, new product development is continuing and the business is increasing market share and growing into new markets.

Currency depreciations in both South Africa and Australia led to Mincon posting a foreign exchange loss of €760,000 in the quarter.

“With many peers pointing towards softer demand for consumables in the third quarter, and in light of significant currency headwinds, the performacne of Mincon’s businesses over the period has been impressive,” said Colin Sheridan of Davy Stockbrokers.

Earlier in the year, Mincon said it remained ambitious for growth and was looking at a number of takeover opportunities.

Regarding that, management said yesterday that it is continuing discussions with “a number of potential acquisition partners, with a view to extending the group’s product range and adding new customers and new geographic markets”.

The company continues to have a strong balance sheet, with net cash of €37.7m at the end of September.

Meanwhile, strong operating profit and reduced working capital led to a €3.4m cash inflow in the quarter at the services firm.

More in this section

Price info
IE_180_logo
Price info

Subscribe to unlock unlimited digital access.
Cancel anytime.

Terms and conditions apply

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up