REG - Mincon Group Plc - Interim Trading Update

MinconAnnouncement

09/05/2022 07:00

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RNS Number : 6711K  Mincon Group Plc  09 May 2022

MINCON GROUP PLC

("Mincon" or the "Group")

 

Q1 TRADING UPDATE

 

Mincon Group plc (ESM: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 period
from 1st January 2022 to date, incorporating the first quarter to 31st March
2022.

 

Trading

We have carried the positive revenue momentum from H2 2021 into the first
quarter of 2022, while continuing to build on our order books during this
quarter, driven by the strong underlying demand for our products across the
Construction, Mining and Waterwell/Geothermal sectors. Our manufacturing
remains under pressure to supply the increased demand, though we have
increased our capacity across the Group through investment in our factories
and through the acquisition of Spartan Drilling Tools, a drill pipe
manufacturer in the USA, in January 2022.

 

We are experiencing significant growth in our three industries versus Q1 2021.
The majority of this is organic growth in both mining and construction, and
through the acquisition of Attakroc in mid-2021, which has been a solid
contributor to the Group and has grown our market share in Eastern Canada.

 

Recent challenges in the supply of raw material began to ease towards the end
of the quarter, though it has someway to go before returning to normal and,
while sea freight conditions also remain challenging, we continue to hold high
levels of raw material and finished product to be able to service our clients'
needs.

 

Whilst we have experienced margin pressure during the quarter due to the lag
in recovering increases in manufacturing and operational costs through price
increases to customers, we expect to recover our margin position in the coming
months. Substantial increased energy costs have been a main driver behind our
margin pressure and trying to mitigate the effect of these is paramount. With
that in mind, we have invested in new plant, in our main hammer factory in
Shannon, to reduce our energy consumption and carbon footprint once that plant
is commissioned later this year.

 

9(th) May 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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