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.

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.

Mincon Group - Impressive revenue growth in Q3 - https://t.co/PGmY84e1Xo

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“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.