Mincon shares rise on 2018 earnings

Shares in Mincon, the Shannon-based supplier to the mining and oil industries, rose 3.5% after it hailed “excellent” 2018 earnings.

However, chief executive Joseph Purcell said that trading in 2019 so far “has been fitful and flat”. He said the group plans “to review the overheads that we have built up with a view to improving efficiency”.

Net profit climbed 27% to €13.3m as revenues rose 21% to €117.7m.

Mr Purcell said: “We have ramped up overheads over the last two years, much of it necessary as part of the group build-out and through our acquisitions, and we will spend much of 2019 consolidating our operations, reducing our overheads and moving strongly back into cash generation.

"This is something that we do every couple of years between strong growth periods, and with the roll-out of the large hammers, the construction sales build-out, and the up-coming launch of the Greenhammer systems we have another busy year ahead of us and redeploying our cash shall be central to that.

"Broker Davy said that Mincon has had “a reasonable start to 2019 operationally, and growth will be bolstered by the company’s first major large diameter drilling contract in Asia”.

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