Interim Trading Update
Q1 2025 revenue up 3% year-on-year; North America orders weaker than expected due to macroeconomic uncertainty.
vs expectations: below expectations in North America
- Q1 2025 Revenue growth 3% (prior Q1 2024)
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Dublin, London 1 May 2025: Mincon Group plc (Euronext: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 period from 1st January 2025 to date, incorporating the first quarter to 31st March 2025 ("Q1 2025").
Markets in Q1 2025
Our overall revenue for Q1 2025 increased by 3% compared to Q1 2024. Several of our regional markets sustained the recovery from the second half of 2024 into the first quarter of 2025, whilst orders in our largest market, North America, were lower than we expected due to increased macroeconomic uncertainty in that region and an extremely cold winter. We are pursuing several construction opportunities across the American region and we anticipate that a significant number of these projects will be secured during Q2 and throughout the remainder of the year.
The operational efficiencies implemented in 2024 have contributed to an improved margin in Q1 2025 compared to Q1 2024. We anticipate further realisation of manufacturing margin improvements in Q2 2025 and beyond, particularly through higher volumes during the busier drilling season.
Product development
Our partners in the offshore wind industry, Subsea Micropiles, reached a significant milestone in mid-April with the installation of the first offshore anchor on the seabed in Northern Scotland. This achievement will substantially contribute to validating the system within the offshore wind industry.
In relation to our Greenhammer product, we are currently in the advanced stages of negotiation, in collaboration with our rig partners, for a one-year, price per foot contract, with a major copper miner in Arizona, USA. This contract is expected to commence in Q3 2025.
Outlook
Notwithstanding the current uncertainty in international financial and business markets, our order books are strong and growing. We have secured some significant new contracts, and the new product development business, discussed above, gives us further cause for optimism about the future prospects for the Company. We will continue to focus on margins, earnings per share and return on capital employed throughout the year ahead.
1st May 2025
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.