Shannon-based Mincon posts record operating profit

Co Clare engineering company Mincon posted a record operating profit of €15 million last year, up 18 per cent on the €12.7 million posted a year earlier.

The Shannon-based firm, which manufactures and exports hammers and drill bits used mainly in the multinational mining and resource industries, said 2013 revenue totalled €52.3 million, down 17 per cent on the €63.1 million, announced for 2012.

Within this, sales of Mincon products totalled €40.7m versus €42.6 million a year earlier. This represents a 5 per cent decline in revenues.

"Demand for Mincon manufactured product remained stable and broadly in line with expectations for the year, with the 5 per cent reduction in revenue due to the weakening of certain key currencies in which we trade, namely the South African Rand and Australian Dollar which devalued on average by 21 per cent and 11 per cent respectively," said chief executive Kevin Barry.

Revenue in EMEA declined by 20 per cent or €8.1 million to €32 million and now represents 61 per cent of group sales as against 63 per cent in 2012.

The share of revenues in the Americas increased to 26 per cent from 24 per cent in 2012, but revenue fell by 11 per cent or €1.7 million. Revenues in the Australasia region represented 11 per cent of total revenues, down €1.1 million on the previous year.

Gross margin for the period was 49.1 per cent while the operating martin for the year was 28.7 per cent, in line with expectations.

Founded in 1977, Mincon listed on the Dublin and London stock exchanges in November.