REG - Mincon Group Plc - Interim Trading Update

MinconAnnouncement

09/05/2023 07:15

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RNS Number : 6693Y  Mincon Group Plc  09 May 2023

MINCON GROUP PLC

("Mincon" or the "Group")

 

Q1 2023 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 period from 1st January 2023 to date, incorporating the first quarter to
31st March 2023.

 

While revenue in Q1 2023 was marginally behind the same period in the prior
year, we are pleased with further improvement in our gross margin in the first
quarter. The reduced revenue in Q1 is a result of lower revenue than expected
in the mining industry, due to reduced activity in the exploration sector
during the quarter and resultant lower orders from some specific large
customers as they adjust their inventories in response.  However, we remain
confident in our outlook for this segment and expect that our mining revenue
will improve as the year progresses.

 

Our revenue in the construction industry remains strong and we continue to
make progress in winning small to mid-size construction projects in Europe and
North America. The very strong construction revenue growth in North America
during 2022 has continued at the same level into Q1 2023. Coupled with this,
we have also seen good growth in construction revenue for the first quarter in
the European market.

 

We have made progress on reducing our order backlog in the past quarter and
are better positioned to deliver quicker to our customers. This has allowed us
to reduce our dependence on air freight and improve our gross margin. Our
price increases, introduced in 2022 to offset manufacturing and operating cost
increases, have also contributed to better margins than in the first quarter
of 2022.

 

We continue to refine the performance of the rig on which the Greenhammer is
operating with our customer in Western Australia. We have also entered into a
collaborative programme with a leading global rig manufacturer with the joint
objective of ensuring that the rig upon which our Greenhammer system is
mounted will enable the effective roll-out of this important technology.

 

We maintain a positive outlook, both for the remainder of 2023 and on our
long-term outlook for the industries in which we operate. Our ambitious
product development programs should serve us well in the global challenges
ahead to reduce carbon emissions. We continue to improve the efficiencies of
our manufacturing plants which will reduce emissions and enhance our
manufacturing margins.

 

 

Ends

9(th) May 2023

 

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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