REG - Mincon Group Plc - Half-year Report
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RNS Number : 7007T Mincon Group Plc 05 August 2025
Mincon Group plc
("Mincon" or the "Group")
2025 Half Year Financial Results
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 products, announces its half year results for the six
months ended 30 June 2025.
H1 2025 Key Financial Highlights Continuing Operations H1 2025 H1 2024 %Change
· Revenue €74.0 million €68.0 million 9%
· Gross Profit €22.0 million €17.4 million 27%
· EBITDA €8.3 million €4.7 million 84%
· Operating Profit €4.1 million €0.2 million 1542%
· Profit/(loss) for the period €0.7 million (€1 million) 168%
H1 2025 Business Highlights
• Revenue increased by 9% in the first half of the year
showing improving momentum as the half progressed.
• Construction revenue growth of 47%, offsetting a weaker
performance in mining and geothermal as the Mincon value proposition to the
construction industry is increasingly recognised.
• Significant recovery in margin driven by operational
and sourcing efficiencies, and volume recovery.
• Greenhammer to start its first "cost per foot"
contract in Arizona.
• First installation of subsea anchor in the Orkney
Islands.
• Continued investment in factory machinery and
automation.
• The strong Q2 momentum, growing market opportunities,
on-going operational initiatives and strong positioning in the construction
industry will continue to contribute to the ongoing improvement in margins.
Joe Purcell, Chief Executive Officer, commenting on the results, said:
"I am pleased to report that the first half of 2025 showed a return to growth
with higher revenue than the prior year but more importantly a significant
recovery in our margins. This improved performance has been driven by
increases in our construction revenues. This strong construction performance
is due to a combination of our superior engineered product offering as well as
onsite service support.
In conjunction with our improved sales, we have continued our focus on driving
operational efficiencies across the Group, which is enhancing our margins and
competitiveness.
Geographic markets
Our revenue in the Americas has seen an increase over the previous year. This
is due to a strong performance in construction sales in North America, across
a broad range of customers. Mining revenues grew in North America, but this
was somewhat offset by reductions in South America as we moved away from a
large low margin mining contract.
Our revenue in Europe/Middle East was up by 6% reflecting increases in
construction revenue. In addition, we experienced an increase in our mining
revenue, largely due to progress made in the Middle East, which is a positive
development. Our water well/geothermal market was slow in the first half of
2025 reflecting a depressed Scandinavian housing market, however we see this
picking up as the year progresses.
Our Africa revenues contracted versus prior year. However, our construction
revenue increased in the region, while our mining revenue decreased due to
challenging market conditions in West and Southern Africa. Our work to improve
our competitive position in both of these regions is continuing and this
should help to improve our revenues and, more importantly, margins over the
medium term.
Geographic markets (continued)
Our Australia Pacific region was flat overall on prior year. Underlying this
was a continued strong performance in our construction revenues from two large
contracts in Tasmania and Western Australia. These increases were offset by a
reduction in our mining revenues largely due to a poor first quarter on the
East Coast due to heavy flooding and increased competition in the market. We
expect an improvement in this region due to the extensive work being done on
cost reduction to improve our competitive position in this important market
for us.
Business Development
There is no doubt that the macroeconomic uncertainty due to the emerging
global tariff situation has given pause for thought. On top of this, there has
also been a rowing back on certain climate commitments which is concerning in
the global push to reduce emissions. In the context of these challenges, it is
important to take a step back and note the flexibility that our global spread
gives us to try and mitigate tariffs. Also, the requirement of reducing
emissions is directly related to increasing the efficiency of drilling which
also impacts drilling costs. In that context, our engineering focus on
efficiency remains a cornerstone in our push to win profitable market share.
On that note, our growing success in the construction sector is a reflection
of the value proposition we represent with a market leading product range,
backed up with experienced, application specific expertise, to deliver and
exceed our customer expectations.
Our Greenhammer project is ready to deliver a yearlong cost per foot contract
on a copper mine in Arizona. We have a team and service facility in place.
This will be delivered in conjunction with our rig manufacturer partner and we
are both optimistic about its future prospects.
Our collaboration with Subsea Micropiles reached an important milestone in
April with the first installation of a subsea anchor in the Orkney Islands in
Scotland. This positive development has been followed with significant
strategic funding for Subsea Micropiles from Scottish and Japanese investors
reflecting the ambition that both Countries have for the development of
offshore wind.
Conclusion
It is pleasing to see the progress that we are making in the first half of
this year. It does demonstrate that our business is moving in the right
direction to increase revenues and more importantly margins and ROCE.
The increased opportunity we see in construction should be supplemented by
growth that our product development can unlock in mining and in time with
renewables. We are building positive momentum, and we need to remain focused
on improving our competitive position, while delivering on the opportunities
we have worked so hard to create. I would like to thank our dedicated teams
around the world for their continued efforts and look forward to brighter days
ahead."
Joseph Purcell
Chief Executive Officer
Key financial commentary
Market Industries
Revenue increased by 9% in the first half of 2025 compared to H1 2024. This
increase was attributed to growth in construction industry revenue, while
mining and waterwell/geothermal revenues declined during the same period.
Foreign exchange movements impacted the Group's revenue growth by 1%.
Industry mix (by revenue)
H1 2025 H1 2024
· Construction 48% 36%
· Mining 38% 48%
· Waterwell / Geothermal 14% 16%
Revenue from the construction industry increased by 47% during the period,
compared to a 23% decrease in the same period of the previous year. Revenue in
the industry became more globally diversified as investments were made to
secure projects across our four regions, although project invoicing in this
industry is inconsistent given the nature of large construction projects.
The Group started recognising construction revenue for two significant
projects in Australia during the second half of 2024, with this continuing
into the first half of 2025. Invoicing for these projects, located in Tasmania
and Western Australia, was completed within the first half of the year.
We also successfully secured our first major port project in Africa and
invoiced it in Q2 2025 although support for the project will continue through
H2 2025 and into H1 2026. While opportunities in the African construction
industry are limited, this project's success should go a long way to improve
future prospects for our construction products and expertise.
The primary opportunities within the construction industry remain concentrated
in developed markets, particularly in Europe and in North America. These
regions have consistently represented our most significant markets in the
construction industry.
Construction revenue in the Americas increased by 36% in H1 2025 compared to
the same period in the previous year, following a 29% contraction in that
earlier period. This growth is attributed to a wider customer base, primarily
located in North America, with ongoing pursuit of significant projects in
South America.
Construction revenue in the EME region experienced a partial recovery in the
first half of 2025, increasing by 10%. This follows a notable contraction of
17% in H1 2024, attributable to elevated interest rates accumulated throughout
2023. Although interest rates began to decline at the half year in 2024, the
reduction was insufficient to incentivise widespread borrowing for
construction. Rates reached a more favourable level for the industry in 2025;
however, it takes time for sector participants to adjust operations
accordingly, as evidenced during Q2 2025.
Market analysis suggests the construction recovery will continue. In H1 2025,
EME construction growth, similar to North America, was mainly driven by
Mincon's supply to a large number of smaller projects in countries where we
have a physical presence.
Mining revenue contracted by 13% in the first half of 2025 compared to the
same period the previous year.
In the APAC region, mining revenue decreased by 40%, following a modest
increase in H1 2024. The Australian mining supply market is highly price
competitive, driven by neighbouring countries that maintain significant
reliance on and investment in the sector. In response to these challenges, we
are formulating strategies to strengthen collaboration with regional partners,
thereby improving our access to mining opportunities. Additional contributing
factors included a very wet first quarter in Northeast Australia and reduced
exploration drilling activity.
Market Industries (continued)
Mining revenue in the Africa region contracted by 26% compared to H1 2024.
Consistent with our approach in H2 2024, we reduced product supply to certain
customers with slower payment histories. Additionally, a major mining client
in the region is transitioning its operations from open-pit surface mining to
underground mining. Our strategic and product focus remains on opportunities
within open-pit mining.
The Americas, our largest mining region, saw flat growth versus H1 2024. North
America grew 13%, while South America contracted by 29%, mainly due to the end
of a major Chilean contract in Q2 2024, which the Group actively chose not to
renew because margins did not meet Group requirements.
Mining revenue in the EME region increased by 28%, mainly due to customer
activity in the Middle East. While the market is characterised by volatility,
there are potential opportunities for mining through partnerships with
suitable customers.
Revenue in the Geothermal/Waterwell industry contracted by 9% versus H1 2024,
primarily due to the performance of the European market, which is mainly
geothermal. This market slowed in Q2 2024, resulting in reduced revenue
through the rest of the year, largely attributable to decreased residential
and commercial construction activity in Northern Europe, a trend that
continued into Q1 2025. With the reduction in interest rates, geothermal
revenue began to recover in Q2 2025.
Earnings
Earnings have increased compared to the same period last year due to increased
revenue and enhanced efficiencies from higher production volumes in factories.
Our margins are subject to variabilities based on the extent of in-house
manufacturing completed within a given period. In the first half of 2025,
in-house production increased compared to the same period in 2024, driven by
higher product demand. Subsequently, there was a recovery in our factory
margins across Europe.
As reported on throughout the previous year, competition for commoditised
products increased across all industries, contributing to a decrease in
revenues in 2024. In response, a comprehensive review of business operations
was conducted in 2024, additional raw material supply chains were established,
and partnerships were formed with manufacturers of commoditised products.
Although these changes are ongoing, there has been an improvement in margins
during the first half of 2025 as a result of these efforts.
Due to volatility in currency markets, FX has had an impact on the Group's
financial result in H1 2025. The impact is mostly resulting from large
pre-2025 non-euro denominated balance sheet items due to the level of
intercompany trading from Europe to the USA. The Group already benefits from a
significant level of natural hedging, which we have enhanced in H1 2025
through acquiring more raw material that is settled using US dollars.
Balance Sheet
Working capital absorbed a significant amount of cash in H1 2025. This was
primarily attributed to an increase in inventory during the period, following
a considerable decrease in inventory in 2024.
The increase in inventory can be attributed to two main factors. Firstly, our
raw material and work-in-progress (WIP) amounts held increased at the end of
H1 2025, excluding foreign exchange (FX) effects, as a result of integrating
new supply chains. This adoption of additional supply chains is being managed
carefully and is also part of our procurement risk. Secondly, inventory levels
of Mincon products have been increased in anticipation of supplying major
construction projects we expect to win in the second half of 2025. As these
projects commence, we expect working capital demands to ease by year-end.
The debtor balance increased at the end of the period compared to the previous
year end, primarily as a result of significant invoicing activity in June 2025
within the construction sector. Although the outstanding debtor balance
currently exceeds our anticipated level slightly, we expect the number of
debtor days to decline by year end.
In the first half of 2025, we commissioned property, plant, and equipment
valued at €1.8 million, with the majority of this investment allocated to
the replacement of ageing assets in certain factories. We intend to maintain
this level of investment in the second half of 2025, with a significant
portion dedicated to furthering the modernisation of our hammer plant via
automation.
Balance Sheet (continued)
As a result of the ongoing root and branch review, €2.3 million cash was
released into the business in the first half of 2025 through the sale of
capital equipment. The largest portion of this amount resulted from the
divestment of our building that previously accommodated Mincon's carbide
manufacturing operations in Sheffield, UK.
During the first half of 2025, new borrowing was less than €0.5 million and
was allocated for the commissioning of plant and equipment. Total borrowing
decreased by more than €3.7 million, excluding foreign exchange effects,
resulting in a ratio well below 2:1 with EBITDA.
During the reporting period, we made payments of €0.7 million towards
historical acquisitions. Additionally, a final dividend for the year 2024
amounting to €2.2 million was disbursed in June 2025.
For further information, please contact:
Mincon Group plc
Tel: +353 (61) 361 099
Joe Purcell CEO
Mark McNamara CFO
Tom Purcell COO
Davy Corporate Finance (Nominated Adviser, Euronext Growth
Tel: +353 (1) 679 6363
Adviser and Joint Broker)
Anthony Farrell
Daragh O'Reilly
Shore Capital (Joint Broker)
Tel:
+44 (0) 20 7408 4090
Malachy McEntyre
Mark Percy
Daniel Bush
Mincon Group plc
2025 Half Year Financial Results
Condensed consolidated income statement
For the 6 months ended 30 June 2025
Unaudited Continuing Operations Unaudited Discontinued Operations Unaudited Unaudited
H1 2025 H1 2025 H1 2025 H1 2024
Notes €'000 €'000 €'000 €'000
(Note 10)
Revenue.............................................................................................................................................................................. 5 74,048 5 74,053 68,011
Cost of 7 (52,051) (19) (52,070) (50,655)
sales.........................................................................................................................................................................
Gross profit 21,997 (14) 21,983 17,356
.........................................................................................................................................................................
Operating 7 (18,047) (108) (18,155) (17,240)
costs.....................................................................................................................................................................
Gain on disposal of property, plant and 14 138 1,408 1,546 133
equipment......................................................................................................................
Operating 4,088 1,286 5,374 249
profit....................................................................................................................................................................
Finance 45 7 52 49
income.....................................................................................................................................................................
Finance (1,135) - (1,135) (1,271)
cost.........................................................................................................................................................................
Foreign exchange (1,947) 70 (1,877) 102
(loss)/gain...................................................................................................................................................
Movement on deferred consideration (5) - (5) 4
.......................................................................................................................................
Profit/(Loss) before tax 1,046 1,363 2,409 (867)
.........................................................................................................................................................
Income tax (377) (327) (704) (116)
expense...............................................................................................................................................................
Profit/(Loss) for the 669 1,036 1,705 (983)
period.....................................................................................................................................................
Earnings/(Loss) per Ordinary Share
Basic earnings/(loss) per share 11 0.31c 0.49c 0.80c (0.46c)
Diluted earnings per share 11 0.30c 0.47c 0.77c (0.00c)
Condensed consolidated statement of comprehensive income
For the 6 months ended 30 June 2025
Unaudited Unaudited
2025 2024
H1 H1
€'000 €'000
Profit/(Loss) for the 1,705 (983)
period............................................................................................................................
Other comprehensive income:
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation - foreign (5,948) 968
operations...............................................................................................
Other comprehensive (loss)/(profit) for the (5,948) 968
period...............................................................................................
Total comprehensive loss for the (4,243) (15)
period.........................................................................................................
The accompanying notes are an integral part of these financial statements.
Condensed Consolidated statement of financial position
As at 30 June 2025
Unaudited 31 December
30 June 2024
2025
Notes €'000 €'000
Non-Current Assets
Intangible assets and 13 38,670 40,099
goodwill.................................................................................................................................................
Property, plant and 14 47,888 50,945
equipment.................................................................................................................................................
Deferred tax asset 8 2,515 2,547
.................................................................................................................................................................
Total Non-Current 89,073 93,591
Assets......................................................................................................................................................
Non-Current Assets Held for Resale 10 - 751
Current Assets
Inventory.............................................................................................................................................................................. 15 68,041 67,335
Trade and other 16 26,272 24,480
receivables....................................................................................................................................................
Prepayments and other current 9,711 9,773
assets.......................................................................................................................................
Current tax 8 945 485
asset...................................................................................................................................................................
Cash and cash 11,175 15,027
equivalents.....................................................................................................................................................
Total Current 116,144 117,100
Assets.............................................................................................................................................................
Total 205,217 211,442
Assets.........................................................................................................................................................................
Equity
Ordinary share 9 2,125 2,125
capital............................................................................................................................................................
Share 67,647 67,647
premium.....................................................................................................................................................................
Undenominated 39 39
capital..........................................................................................................................................................
Merger (17,393) (17,393)
reserve......................................................................................................................................................................
Share based payment 12 2,766 2,573
reserve.................................................................................................................................................
Foreign currency translation (13,386) (7,438)
reserve.........................................................................................................................................
Retained 104,237 104,762
earnings.................................................................................................................................................................
Total 146,035 152,315
Equity..........................................................................................................................................................................
Non-Current Liabilities
Loans and 17 19,189 23,770
borrowings............................................................................................................................................................
Deferred tax 8 1,517 1,535
liability...............................................................................................................................................................
Deferred 18 846 1,641
consideration...........................................................................................................................................................
Other 227 385
liabilities......................................................................................................................................................................
Total Non-Current 21,779 27,331
Liabilities...................................................................................................................................................
Current Liabilities
Loans and 17 15,342 13,913
borrowings............................................................................................................................................................
Trade and other 11,614 9,170
payables.......................................................................................................................................................
Accrued and other 9,675 8,095
liabilities.....................................................................................................................................................
Current tax 8 772 618
liability.................................................................................................................................................................
Total Current 37,403 31,796
Liabilities.........................................................................................................................................................
Total 59,182 59,127
Liabilities.....................................................................................................................................................................
Total Equity and 205,217 211,442
Liabilities......................................................................................................................................................
The accompanying notes are an integral part of these financial statements.
Condensed consolidated statement of cash flows
For the 6 months ended 30 June 2025
Unaudited Unaudited
H1 H1
2025 2024
€'000 €'000
Operating activities:
Profit/(loss) for the 1,705 (983)
period....................................................................................................................................................
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation..................................................................................................................................................................... 3,819 4,048
Amortisation of product 242 242
development....................................................................................................................................
Amortisation of intellectual 183 139
property......................................................................................................................................
Movement on deferred 5 (4)
consideration....................................................................................................................................
Finance 1,135 1,271
cost.....................................................................................................................................................................
Finance (52) (49)
income................................................................................................................................................................
Gain on sale of property, plant and (1,546) (133)
equipment........................................................................................................................
Income tax 704 116
expense...........................................................................................................................................................
Other non-cash 1,890 (109)
movements................................................................................................................................................
8,085 4,538
Changes in trade and other (3,062) (3,541)
receivables................................................................................................................................
Changes in prepayments and other current (197) 574
assets..................................................................................................................
Changes in (4,139) 1,055
inventory.........................................................................................................................................................
Changes in trade and other 4,132 2,291
payables....................................................................................................................................
Cash provided by 4,819 4,917
operations...............................................................................................................................................
Interest 52 49
received................................................................................................................................................................
Interest (1,135) (1,271)
paid.....................................................................................................................................................................
Income taxes (1,023) (1,630)
paid.............................................................................................................................................................
Net cash provided by operating 2,713 2,065
activities............................................................................................................................
Investing activities
Purchase of property, plant and (1,792) (2,534)
equipment............................................................................................................................
Proceeds from the sale of property, plant and 2,337 313
equipment.........................................................................................................
Payment of deferred (195) (202)
consideration.......................................................................................................................................
Investment in acquired intangible (485) (303)
assets...............................................................................................................................
Net cash used in investing (135) (2,726)
activities...................................................................................................................................
Financing activities
Dividends (2,230) (2,231)
paid..................................................................................................................................................................
Repayment of (2,567) (2,270)
borrowings...................................................................................................................................................
Repayment of lease (1,667) (1,546)
liabilities..............................................................................................................................................
Drawdown of 484 1,969
loans............................................................................................................................................................
Net cash used in financing (5,980) (4,078)
activities...................................................................................................................................
Effect of foreign exchange rate changes on (450) 25
cash....................................................................................................................
Net decrease in cash and cash (3,852) (4,714)
equivalents.........................................................................................................................
Cash and cash equivalents at the beginning of the 15,027 20,482
year...........................................................................................................
Cash and cash equivalents at the end of the 11,175 15,768
period..............................................................................................................
Cash and cash equivalents for discontinued 1,096 -
operations...........................................................................................................
Cash and cash equivalents for continuing 10,079 15,768
operations..............................................................................................................
Cash and cash equivalents at the end of the 11,175 15,768
period..............................................................................................................
The accompanying notes are an integral part of these financial statements.
Condensed consolidated statement of changes in equity for the 6 months ended
30 June 2025
Share Share premium Merger reserve Un-denominated Share based payment reserve Foreign Retained earnings Unaudited Total
capital capital currency translation reserve equity
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Balances at 1 July 2024 2,125 67,647 (17,393) 39 2,398 (6,898) 104,244 152,162
Comprehensive income:
Profit for the period - - - - - - 2,749 2,749
Other comprehensive income:
Foreign currency translation - - - - - (540) - (540)
Total comprehensive income (540) 2,749 2,209
Transactions with Shareholders:
Share-based payments - - - - 175 - - 175
Dividend payment - - - - - - (2,231) (2,231)
Total transactions with Shareholders - - - - 175 - (2,231) (2,056)
Balances at 31 December 2024 2,125 67,647 (17,393) 39 2,573 (7,438) 104,762 152,315
Comprehensive income:
Loss for the period - - - - - - 1,705 1,705
Other comprehensive income:
Foreign currency translation - - - - - (5,948) - (5,948)
Total comprehensive income (5,948) 1,705 (4,243)
Transactions with Shareholders:
Share-based payments - - - - 193 - - 193
Dividend payment - - ,- - - - (2,230) (2,230)
Total transactions with Shareholders - - - - 193 - (2,230) (2,037)
Balances at 30 June 2025 2,125 67,647 (17,393) 39 2,766 (13,386) 104,237 146,035
The accompanying notes are an integral part of these financial statement.
Notes to the condensed consolidated interim financial statements
1 Description of business
Mincon Group plc ("the Company") is a company incorporated in the Republic of
Ireland. The unaudited condensed consolidated interim financial statements of
the Company for the six months ended 30 June 2025 (the "Interim Financial
Statements") include the Company and its subsidiaries (together referred to as
the "Group"). The Interim Financial Statements were authorised for issue by
the Directors on 05 August 2025.
2. Basis of preparation
The Interim Financial Statements have been prepared in accordance with IAS 34,
'Interim Financial Reporting', as adopted by the EU. The Interim Financial
Statements do not include all of the information required for full annual
financial statements and should be read in conjunction with the Group's
consolidated financial statements for the year ended 31 December 2024 as set
out in the 2024 Annual Report (the "2024 Accounts"). The Interim Financial
Statements do, however, include selected explanatory notes to explain events
and transactions that are significant to an understanding of the changes in
the Group's financial position and performance since the last annual financial
statements.
The Interim Financial Statements do not constitute statutory financial
statements. The statutory financial statements for the year ended 31
December 2024, extracts from which are included in these Interim Financial
Statements, were prepared under IFRS as adopted by the EU and will be filed
with the Registrar of Companies together with the Company's 2024 annual
return. They are available from the Company website www.mincon.com and, when
filed, from the registrar of companies. The auditor's report on those
statutory financial statements was unqualified.
The Interim Financial Statements are presented in Euro, rounded to the nearest
thousand, which is the functional currency of the parent company and also the
presentation currency for the Group's financial reporting.
The financial information contained in the Interim Financial Statements has
been prepared in accordance with the accounting policies applied in the 2024
Accounts.
3. Use of estimates and judgements
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities,
income, and expenses. The judgements, estimates and associated assumptions
are based on historical experience and other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgements about the carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results may differ
materially from these estimates. In preparing the Interim Financial
Statements, the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
the same as those that applied to the 2024 Accounts.
4. Changes in material accounting policy information
There have been no changes in material accounting policy information applied
in these Interim Financial Statements, they are the same as those applied in
the last annual audited financial statements.
5. Revenue
H1 H1
2025 2024
€'000 €'000
Product revenue:
Sale of Mincon 59,825 54,828
product...........................................................................................................................................
Sale of third-party 14,228 13,183
product.......................................................................................................................................
Total revenue 74,053 68,011
((1))......................................................................................................................................................
((1)) Total revenue in H1 2025 includes revenue from discontinued operations.
6. Operating Segments
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker (CODM). Our CODM has
been identified as the Board of Directors.
Having assessed the aggregation criteria contained in IFRS 8 operating
segments and considering how the Group manages its business and allocates
resources, the Group has determined that it has one reportable segment. In
particular the Group is managed as a single business unit that sells drilling
equipment, primarily manufactured by Mincon manufacturing sites.
Entity-wide disclosures
The business is managed on a worldwide basis but operates manufacturing
facilities and sales offices in Ireland, Sweden, Finland, South Africa,
Australia, the United States and Canada and sales offices in other locations
including Australia, South Africa, Finland, Spain, Namibia, Ghana, France,
Sweden, Canada, Chile and Peru. In presenting information on geography,
revenue is based on the geographical location of customers and non-current
assets based on the location of these assets.
Revenue by region (by location of customers):
H1 H1
2025 2024
€'000 €'000
Region:
Europe, Middle East, 36,255 32,952
Africa....................................................................................................................................................
Americas............................................................................................................................................................................... 30,203 26,303
Australasia............................................................................................................................................................................. 7,176 7,228
Ireland................................................................................................................................................................................... 419 1,528
Total revenue 74,053 68,011
((1)).....................................................................................................................................................................
(1) Total revenue in H1 2025 includes revenue from discontinued operations.
Non-current assets by region (location of assets):
30 June 31 December
2025 2024
€'000 €'000
Region: ( )
Europe, Middle East, 63,526 64,789
Africa................................................................................................................................................
Americas........................................................................................................................................................................... 13,733 16,088
Australasia......................................................................................................................................................................... 9,299 10,167
Total non-current assets((1)) 86,558 91,044
................................................................................................................................................
(1) Non-current assets exclude deferred tax assets.
7. Cost of Sales and operating expenses
Included within cost of sales, operating costs were the following major
components:
Cost of sales
H1 H1
2025 2024
€'000 €'000
Raw 19,453 20,459
materials..........................................................................................................................................................................
Third-party product 11,019 10,222
purchases..................................................................................................................................................
Employee 10,145 9,961
costs.......................................................................................................................................................................
Depreciation (note 2,674 2,827
14)..............................................................................................................................................................
In bound costs on 1,847 1,548
purchases....................................................................................................................................................
Energy 1,122 1,289
costs...........................................................................................................................................................................
Maintenance of 981 795
machinery........................................................................................................................................................
Subcontracting........................................................................................................................................................................ 2,930 1,639
Amortisation of product 242 242
development.......................................................................................................................................
Other....................................................................................................................................................................................... 1,657 1,673
Total cost of sales ((1)) 52,070 50,655
..............................................................................................................................................................
((1)) Total cost of sales in H1 2025 includes cost of sales from discontinued
operations.
Operating costs
H1 H1
2025 2024
€'000 €'000
Employee 10,246 10,203
costs.......................................................................................................................................................................
Depreciation (note 1,145 1,221
14)..............................................................................................................................................................
Amortisation of acquired intellectual 183 139
property............................................................................................................................
Travel...................................................................................................................................................................................... 814 1,075
Other....................................................................................................................................................................................... 5,767 4,602
Total other operating costs 18,155 17,240
((1))..................................................................................................................................................
((1)) Total operating costs in H1 2025 includes operating costs from
discontinued operations.
Employee information
H1 H1
2025 2024
€'000 €'000
Wages and 17,378 17,265
salaries.............................................................................................................................................
Social security 1,680 1,602
costs...........................................................................................................................................
Pension costs of defined contribution 1,140 1,140
plans.........................................................................................................
Share based payments (note 193 157
12)..........................................................................................................................
Total employee 20,391 20,164
costs((1))......................................................................................................................................
((1)) Total employee costs in H1 2025 includes employee costs from
discontinued operations.
The average number of employees was as follows:
H1 H1
2025 2024
Number Number
Sales and 119 125
distribution......................................................................................................................................
General and 75 74
administration...............................................................................................................................
Manufacturing, service and 316 335
development..........................................................................................................
Average number of persons 510 534
employed...........................................................................................................
8. Income Tax
The Group's consolidated effective tax rate in respect of operations for the
six months ended 30 June 2024 was 29% (30 June 2024: (-13%). The effective
rate of tax is forecast at 25% for 2025. The tax charge for the six months
ended 30 June 2025 of €704,000 (30 June 2024: €116,000) includes income
tax expense relating to discontinued operations and deferred tax relating to
movements in provisions, net operating losses forward and the temporary
differences for property, plant and equipment recognised in the income
statement.
The net current tax asset/(liability) at period-end was as follows:
30 June 31 December
2025 2024
€'000 €'000
Current tax 945 485
prepayments......................................................................................................................................
Current tax (772) (618)
payable.............................................................................................................................................
Net current tax 173 (133)
asset/(liability)..............................................................................................................................
The net deferred tax liability at period-end was as follows:
30 June 31 December
2025 2024
€'000 €'000
Deferred tax 2,515 2,547
asset................................................................................................................................................
Deferred tax (1,517) (1,535)
liability..............................................................................................................................................
Net deferred tax 998 1,012
asset..........................................................................................................................................
9. Share capital
Allotted, called- up and fully paid up shares Number €000
01 January 212,472,413 2,125
2025...........................................................................................................................................................
30 June 212,472,413 2,125
2025................................................................................................................................................................
Share issuances
On 26 November 2013, Mincon Group plc was admitted to trading on the
Enterprise Securities Market (ESM) of the Euronext Dublin and the Alternative
Investment Market (AIM) of the London Stock Exchange.
10. Discontinued Operations and Non-current Assets Held for Resale
The amounts presented in the 30 June 2025 condensed consolidated income
statement under discontinued operations relate to the Mincon Carbide Limited
which the Board of Directors made the decision to cease trading during the
second half of 2024.
As at 31 December 2024, all contracts with customers in Mincon Carbide Limited
were fulfilled and all inventory and portion of the property and equipment
have been sold. Further, few employees are still employed to execute
outstanding administrative activities.
The remaining property and equipment was sold in January 2025 and a gain on
sale on of property and equipment of €1.4 million is presented as
discontinued operations for the six months ended 30 June 2025.
11. Earnings/(Loss) per share
Basic earnings per share (EPS) is computed by dividing the profit for the
period available to ordinary shareholders by the weighted average number of
Ordinary Shares outstanding during the period. Diluted earnings per share is
computed by dividing the profit for the period by the weighted average number
of Ordinary Shares outstanding and, when dilutive, adjusted for the effect of
all potentially dilutive shares. The following table sets forth the
computation for basic and diluted net profit per share for the periods ended
30 June:
H1 2025 Continuing H1 2025 Discontinued Operations H1 2025 H1 2024
Operations
Numerator (amounts in €'000):
Profit/(Loss) attributable to owners of the Parent 669 1,036 1,705 (983)
...........................................................................................
Denominator (Number):
Basic shares
outstanding..............................................................................................................................
Restricted share
awards................................................................................................................................
Restricted share
options...............................................................................................................................
Diluted weighted average shares
outstanding…………………………………………….
212,472,413 212,472,413 212,472,413 212,472,413
740,000 740,000 740,000 830,000
7,110,000 7,110,000 7,110,000 2,860,000
220,322,413 220,322,413 220,322,413 216,162,413
Earnings/(Loss) per Ordinary Share
Basic earnings/(loss) per share, 0.31c 0.49c 0.80c (0.46c)
€..................................................................................................................
0.30c 0.47c 0.77c (0.00c)
Diluted earnings per share,
€.........................................................................................................................
Diluted weighted average shares
outstanding…………………………………………….
212,472,413
212,472,413
212,472,413
212,472,413
740,000
740,000
740,000
830,000
7,110,000
7,110,000
7,110,000
2,860,000
220,322,413
220,322,413
220,322,413
216,162,413
Earnings/(Loss) per Ordinary Share
Basic earnings/(loss) per share,
€..................................................................................................................
Diluted earnings per share,
€.........................................................................................................................
0.31c
0.30c
0.49c
0.47c
0.80c
0.77c
(0.46c)
(0.00c)
For the period ended 30 June 2024, the inclusion of potentially issuable
ordinary shares would result in a decrease in the loss per share, thus, they
are considered to be anti-dilutive and as such, a diluted loss per share was
not included.
12. Share based payment
The vesting conditions of the scheme state that the minimum growth in EPS
shall be CPI plus 5% per annum, compounded annually, over the relevant three
accounting years up to the share award of 100% of the participant's basic
salary. Where awards have been granted to a participant in excess of 100% of
their basic salary, the performance condition for the element that is in
excess of 100% of basic salary is that the minimum growth in EPS shall be CPI
plus 10% per annum, compounded annually, over the three accounting years.
Reconciliation of outstanding share awards Number of Awards in thousands
Outstanding on 1 January 780
2025...................................................................................................................
Forfeited during the (40)
period.........................................................................................................................
Exercised during the -
period........................................................................................................................
Granted during the -
period...........................................................................................................................
Outstanding at 30 June 740
2025.....................................................................................................................
Reconciliation of outstanding share options Number of Options in thousands
Outstanding on 1 January 2,860
2025...................................................................................................................
Forfeited during the (110)
period.........................................................................................................................
Exercised during the -
period........................................................................................................................
Granted during the 4,360
period...........................................................................................................................
Outstanding at 30 June 7,110
2025.....................................................................................................................
13. Intangible Assets and Goodwill
Internally generated intangible assets Goodwill Total
Acquired intellectual property
€'000 €'000 €'000 €'000
Balance at 1 January 6,180 31,767 2,152 40,099
2025..........................................................................................................................
Amortisation of product (242) - (242)
development..........................................................................................................
Acquired intellectual - - 485 485
property.......................................................................................................................
Amortisation of intellectual - - (183) (183)
property.............................................................................................................
Foreign currency translation - (773) (716) (1,489)
differences.......................................................................................................
Balance at 30 June 5,938 30,994 1,738 38,670
2025.............................................................................................................................
14. Property, Plant and Equipment
Capital expenditure in the first half-year amounted to €1.8 million (30 June
2024: €2.5 million), of which €1.5 million was invested in plant and
equipment (30 June 2024: €2.2 million). Gain on sale of property and
equipment in the first half amounted to €1.5 million (30 June 2024:
€133,000). The depreciation charge for property, plant and equipment is
recognised in the following line items in the income statement:
H1 H1
2025 2024
€'000 €'000
Cost of sales (note 2,674 2,827
7)......................................................................................................................................
Operating costs (note 1,145 1,221
7)...................................................................................................................................
Total depreciation charge for property, plant and 3,819 4,048
equipment..........................................................................
15. Inventory
30 June 31 December
2025 2024
€'000 €'000
Finished 45,566 44,807
goods...........................................................................................................................................................
Work-in-progress......................................................................................................................................................... 8,603 9,309
Raw 13,872 13,219
materials..............................................................................................................................................................
Total 68,041 67,335
inventory...........................................................................................................................................................
The Group recorded an impairment of €24,000 against inventory to take
account of net realisable value during the period ended 30 June 2025 (30 June
2024: €NIL).
16. Trade and other receivables
30 June 31 December
2025 2024
€'000 €'000
Gross 27,482 26,165
receivable.....................................................................................................................................................
Provision for (1,210) (1,685)
impairment.........................................................................................................................................
Net trade and other receivables 26,272 24,480
Provision for impairment
€'000
Balance at 1 January (1,685)
2025..................................................................................................................................................
Deduction.......................................................................................................................................................................... 475
Balance at 30 June 2025 (1,210)
...................................................................................................................................................
16. Trade and other receivables (continued)
The following table provides the information about the exposure to credit risk
and ECL's for trade receivables as at 30 June 2025.
Weighted average loss rate % Gross carrying amount €'000 Loss
allowance
€'000
Current (not past 1% 19,000 280
due).................................................................................................................................................
1-30 days past 8% 3,821 286
due.....................................................................................................................................................
31-60 days past 12% 1,026 123
due...................................................................................................................................................
61 to 90 days 7% 3,341 227
............................................................................................................................................................
More than 90 days past due 100% 294 294
.......................................................................................................................................
Net trade and other 27,482 1,210
receivables...................................................................................................................................
The following table provides the information about the exposure to credit risk
and ECL's for trade receivables as at 31 December 2024.
Weighted average loss rate % Gross carrying amount €'000 Loss
allowance
€'000
Current (not past 2% 16,800 374
due).................................................................................................................................................
1-30 days past 12% 3,825 459
due.....................................................................................................................................................
31-60 days past 19% 1,793 340
due...................................................................................................................................................
61 to 90 days 11% 3,624 389
............................................................................................................................................................
More than 90 days past due 100% 123 123
.......................................................................................................................................
Net trade and other 26,165 1,685
receivables...................................................................................................................................
17. Loans, borrowings and lease liabilities
30 June 31 December
2025 2024
Maturity €'000 €'000
Loans and 2025-2036 27,716 29,802
borrowings...............................................................................................................................................
Lease 2025-2032 6,815 7,881
liabilities..........................................................................................................................................................
Total Loans, borrowings and lease liabilities 34,531 37,683
Current 15,342 13,913
Non-current 19,189 23,770
The Group has a number of bank loans and lease liabilities with a mixture of
variable and fixed interest rates. The Group has not been in default on any of
these debt agreements during any of the periods presented. The loans are
secured against the assets for which they have been drawn down for.
18. Financial Risk Management
The Group is exposed to various financial risks arising in the normal course
of business. Our financial risk exposures are predominantly related to changes
in foreign currency exchange rates as well as the creditworthiness of our
financial asset counterparties.
The Interim Financial Statements do not include all financial risk management
information and disclosures required in the annual financial statements and
should be read in conjunction with the 2024 Accounts. There have been no
changes in our risk management policies since year-end and no material changes
in our interest rate risk.
18. Financial Risk Management (continued)
a) Liquidity and Capital
The Group defines liquid resources as the total of its cash, cash equivalents
and short term deposits. Capital is defined as the Group's shareholders'
equity and borrowings.
The Group's objectives when managing its liquid resources are:
• To maintain adequate liquid resources to fund its
ongoing operations and safeguard its ability to continue as a going concern,
so that it can continue to create value for investors;
• To have available the necessary financial resources to
allow it to invest in areas that may create value for shareholders; and
• To maintain sufficient financial resources to mitigate
against risks and unforeseen events.
Liquid and capital resources are monitored on the basis of the total amount of
such resources available and the Group's anticipated requirements for the
foreseeable future. The Group's liquid resources and shareholders' equity at
30 June 2025 and 31 December 2024 were as follows:
30 June 2025 31 December 2024
€'000 €'000
Cash and cash equivalents 11,175 15,027
...............................................................................................................................
Loans and 34,531 37,683
borrowings.......................................................................................................................................
Shareholders' equity 146,035 152,315
........................................................................................................................................
b) Foreign currency risk
The Group is a multinational business operating in a number of countries and
the euro is the presentation currency. The Group, however, does have revenues,
costs, assets and liabilities denominated in currencies other than euro.
Transactions in foreign currencies are recorded at the exchange rate
prevailing at the date of the transaction. The resulting monetary assets and
liabilities are translated into the appropriate functional currency at
exchange rates prevailing at the reporting date and the resulting gains and
losses are recognised in the income statement. The Group manages some of its
transaction exposure by matching cash inflows and outflows of the same
currencies. The Group does not engage in hedging transactions and therefore
any movements in the primary transactional currencies will impact
profitability. The Group continues to monitor appropriateness of this policy.
The Group's global operations create a translation exposure on the Group's net
assets since the financial statements of entities with non-euro functional
currencies are translated to euro when preparing the consolidated financial
statements. The Group does not use derivative instruments to hedge these net
investments.
The principal foreign currency risks to which the Group is exposed relate to
movements in the exchange rate of the euro against US dollar, South African
rand, Australian dollar, Swedish krona and Canadian dollar.
The Group has material subsidiaries with a functional currency other than the
euro, such as US dollar, Australian dollar, South African rand, Canadian
dollar and Swedish krona.
In 2025, 56% (2024: 55%) of Mincon's revenue €74.1 million (30 June 2024:
€68.0 million) was generated in Australian Dollar, Swedish Krona and US
Dollar. The majority of the Group's manufacturing base has a Euro, US dollar
or Swedish krona cost base. While Group management makes every effort to
reduce the impact of this currency volatility, it is impossible to eliminate
or significantly reduce given the fact that the highest grades of our key raw
materials are either not available or not denominated in these markets and
currencies. Additionally, the ability to increase prices for our products in
these jurisdictions is limited by the current market factors.
Currency also has a significant transactional impact on the Group as
outstanding balances in foreign currencies are retranslated at closing rates
at each period end. The changes in the foreign currencies have either weakened
or strengthened, resulting in a foreign exchange loss being recognised in
other comprehensive income and a significant movement in foreign currency
translation reserve.
18. Financial Risk Management (continued)
Average and closing exchange rates for the Group's primary currency exposures
were as disclosed in the table below for the period presented.
30 June H1 2025 31 December H1 2024
2025 2024
Euro exchange rates Closing Average Closing Average
US 1.17 1.09 1.04 1.08
Dollar..........................................................................................................................................................................
Australian Dollar 1.79 1.72 1.67 1.60
...............................................................................................................................................................
Canadian 1.60 1.54 1.49 1.46
Dollar.................................................................................................................................................................
South African Rand 20.84 20.09 19.55 19.67
...........................................................................................................................................................
Swedish Krona 11.13 11.09 11.46 11.33
.................................................................................................................................................................
c) Fair values
Financial instruments carried at fair value
The deferred consideration payable represents management's best estimate of
the fair value of the amounts that will be payable, discounted as appropriate
using a market interest rate. The fair value was estimated by assigning
probabilities, based on management's current expectations, to the potential
pay-out scenarios. The fair value of deferred consideration is not dependent
on the future performance of the acquired businesses against predetermined
targets and on management's current expectations thereof.
Movements in the year in respect of Level 3 financial instruments carried at
fair value
The movements in respect of the financial assets and liabilities carried at
fair value in the period ended to 30 June 2025 are as follows:
Deferred
consideration
€'000
Balance at 1 January 1,641
2025..........................................................................................................................................
Cash (680)
payment............................................................................................................................................................
Foreign currency translation 4
adjustment.......................................................................................................................
Unwinding of discount on deferred (119)
consideration.........................................................................................................
Balance at 30 June 846
2025.............................................................................................................................................
19. Commitments
The following capital commitments for the purchase of property, plant and
equipment had been authorised by the directors at 30 June 2025:
Total
€'000
Contracted 800
for.........................................................................................................................................................................
Not contracted for 410
..................................................................................................................................................................
Total 1,210
......................................................................................................................................................................................
20. Litigation
The Group is not involved in legal proceedings that could have a material
adverse effect on its results or financial position.
21. Related Parties
The Group has relationships with its subsidiaries, directors and senior key
management personnel. All transactions with subsidiaries eliminate on
consolidation and are not disclosed.
As at 30 June 2025, the share capital of Mincon Group plc was 56.32% owned by
Kingbell Company (31 December 2024 56.32%), this company is ultimately
controlled by Patrick Purcell and members of the Purcell family. Patrick
Purcell retired as a director of the Company on 19 May 2025. The Group paid
the final dividend for 2024 in June 2025, Kingbell Company receive €1.3
million.
There were no other related party transactions in the half year ended 30 June
2025 that affected the financial position or the performance of the Company
during that period and there were no changes in the related party transactions
described in the 2024 Accounts that could have a material effect on the
financial position or performance of the Company in the same period.
22. Subsequent events
There have been no significant events subsequent to the period end 30 June
2025 affecting the Group.
23. Approval of financial statements
The Board of Directors approved the Interim Financial Statements for the six
months ended 30 June 2025 on
05 August 2025.
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