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Mincon Group PLC on Tuesday reported a fall in revenue and pretax profit in a difficult half year, with a slow-down of mining revenue preventing growth. In the six months ended June 30, the Shannon, Ireland-based rock drilling tool manufacturer said revenue fell 5.2% to €80.6 million, from €85.1 million the prior year. The fall in revenue was driven primarily by a contraction in mining industry revenue by 15% in the period, with mining revenue in Europe and the Middle East down 72% year-on-year due to disruption caused by the war in Ukraine. Pretax profit was down 33% to €6.1 million, from €9.1 million. Earnings before interest, tax, depreciation, and amortisation was €11.8 million, down 7.1% from €12.7 million the year prior. Chief Executive Officer Joe Purcell said: ‘The first half of 2023 has been a challenging period for Mincon with our revenue behind the same period in the prior year, primarily due to a shortfall in our sales to the mining industry and FX headwinds. ‘This performance in the sector is down to several factors but mainly due to reduced exploration activity and certain larger customers taking advantage of improved freight conditions to reduce inventories.’ Cash and cash equivalents at the end of the period were €12.7 million, down from €15.3 million the year before. Mincon declared an interim dividend of 1.05 cent per share, unchanged from the year before. The company said it expects to deliver revenue growth in the second half of the year, and that it would see benefits from its cost reduction program. ‘We are also confident that we will continue with the progress we are making on inventory reduction in the second half of 2023. I feel privileged to work with the global Mincon team and look forward to delivering on the platform that we have created,’ said CEO Purcell. Shares in Mincon were untraded at 90.50 pence in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved
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