REG - Mincon Group Plc - Q3 Trading Update

MinconAnnouncement

01/11/2022 07:00

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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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