Mincon Group Plc Interim Trading Update (4439E)
09 November 2020 - 6:00PM
UK Regulatory
TIDMMCON
RNS Number : 4439E
Mincon Group Plc
09 November 2020
MINCON GROUP PLC
("Mincon" or the "Group")
INTERIM TRADING UPDATE
Mincon Group plc (ESM:MIO AIM:MCON), the Irish engineering group
specialising in the design, manufacture, sale and servicing of rock
drilling tools and associated products, today provides an interim
trading update for the period from 1st January 2020 to date,
incorporating the third quarter to 30(th) September 2020.
Trading
Building on a trend noted in the Group's interim results, we
have continued with the broadening of the business during the third
quarter and the Group has achieved comparable growth to H1 2020.
Our total revenue increased by 12% compared with the first nine
months of 2019. Revenue from the construction sector has continued
to grow, although some of this growth was achieved through the sale
of non-Mincon manufactured product, with a corresponding lower
gross margin.
The environment in the mining sector is positive in light of the
strong prices in precious metals and iron ore. Our trading in the
sector, while in line with H1 2020, remains challenged by the
Covid-19 pandemic due to the difficulties in shipping product, as
the recovery from the initial shock of the pandemic evolves at
various speeds in different regions.
All regional government Covid-19 restrictions we experienced
with our factories globally during H1 2020 have now been lifted.
Our factories are fully operational and are compliant with all
Covid-19 measures, and we continue to focus on the health and
safety of our workforce.
Although we have had a strong trading performance during 2020 to
date, the effect of the Covid-19 pandemic on global trade over the
coming 6 months at least, remains uncertain. As a result, the Board
has decided to adopt a prudent approach by suspending the interim
dividend for 2020. However, we will continue to assess our ongoing
capital requirements and, in the absence of any significant adverse
impact of the pandemic in our markets in the coming months, it is
the Board's intention to increase the final dividend declared in
respect of the financial year 2020 so that the final dividend will
be in line with the total dividend paid for 2019.
Forward looking statements
Any forward-looking statements made in this document represent
the Board's best judgment as to what may occur in the future.
However, the Group's actual results for the current and future
financial periods and corporate developments will depend on a
number of economic, competitive and other factors, some of which
will be outside the control of the Group. Such factors could cause
the Group's actual results for future periods to differ materially
from those expressed in any forward-looking statements included in
this announcement.
Ends
9(th) November 2020
For further information please contact
Mincon Group plc
Joe Purcell - Chief Executive Officer Tel: +353 (61) 361 099
Mark McNamara - Chief Financial Officer
Davy Corporate Finance (Nominated Adviser and Euronext Growth
Advisor)
Anthony Farrell Tel: +353 (1) 679 6363
Daragh O' Reilly
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END
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