Engineering group Mincon enjoys 26% jump in pre-tax profit

Firm manufactures rock-drilling hammers and bits for mining and drilling industry

Pre-tax profits at Dublin-listed engineering group Mincon jumped 26 per cent to €6.3 million in the first half of 2017 despite having to absorb a €500,000 foreign exchange hit as the rand and dollar weakened.

The company, which manufactures rock-drilling hammers and bits for the mining and drilling industry, reported revenue of €47 million for the six-month period, up 29 per cent on the corresponding period last year or 23 per cent in constant currency terms.

Commenting on the results, chief executive Joe Purcell said: "We have driven good growth in our current product ranges, and we have the new products, the new factories and the investment of the last couple of years to come on stream.

“We have a very strong balance sheet, adequate cash resources and an ambitious, experienced team in a sector that continues to improve,” he said.

Mr Purcell said while growth in 2017 has been strong, the company will need to keep growing to add significantly to that “run rate”.

“Having said that we have three good investment projects coming to fruition in the remainder of 2017 and 2018 and believe a reasonable strike rate will deliver meaningful growth and profitability from these for the Group,” he said.

Mincon’s board recommended an interim dividend of 1 cent per ordinary share to be paid next month.