Mincon Group Plc Q3 Trading Update (8169Q)
November 01 2021 - 3:00AM
UK Regulatory
TIDMMCON
RNS Number : 8169Q
Mincon Group Plc
01 November 2021
MINCON GROUP PLC
("Mincon" or the "Group")
Q3 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 consumable products, today provides a
trading update for the 9 months to 30(th) September 2021.
Trading
We have sustained the sales growth experienced in the first half
of the year during the past quarter, with revenue for the nine
months to September 2021 up 6% on the first nine months of 2020.
Our order levels increased strongly during Q3 2021, and our
production levels were increased to enable us to fulfil orders for
the final quarter of the year.
As noted at the time of the Group's interim results, across the
Group we continue to experience delays in the delivery of raw
materials to our factories and the delivery of manufactured
products from our factories to our customer centres as a result of
increased sea freight transit times. As such we have decided to
maintain our raw material inventories at higher levels in our
factories, and we have increased inventories in our customer
centres to ensure customer supply. In line with other industries,
we have continued to experience higher freight and raw material
costs. Arising from these issues we have experienced some pressure
on margins and we are passing on increased costs when we can in an
equitable and sustainable manner.
Investments
During the past quarter we invested in our sales footprint to
reach new customers and to gain future market share. We have hired
new salespeople, opened new warehouse points in key locations and
acquired AttakRoc, a distributor in Quebec City in July of this
year. We have also invested in our factories during the past
quarter to improve efficiency and add capacity with new and more
environmentally friendly production methods. We expect that the
commissioning of the new equipment from this investment will take
place in Q4 2021 and Q1 2022.
Ends
1(st) November 2021
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, Euronext Growth
Advisor and Joint Broker)
Anthony Farrell Tel: +353 (1) 679 6363
Daragh O' Reilly
Shore Capital (Joint Broker)
Malachy McEntyre Tel: +44 (0) 20 7408 4090
Mark Percy
Daniel Bush
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.
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END
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