Mincon Group plc
("Mincon" or the "Group")
2025 Half Year Financial Results
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 products, announces its half year results for the six months ended 30 June 2025.
| H1 2025 Key Financial Highlights Continuing Operations | H1 2025 | H1 2024 | %Change |
| · Revenue | €74.0 million | €68.0 million | 9% |
| · Gross Profit | €22.0 million | €17.4 million | 27% |
| · EBITDA | €8.3 million | €4.7 million | 84% |
| · Operating Profit | €4.1 million | €0.2 million | 1542% |
| · Profit/(loss) for the period | €0.7 million | (€1 million) | 168% |
H1 2025 Business Highlights
• Revenue increased by 9% in the first half of the year showing improving momentum as the half progressed.
• Construction revenue growth of 47%, offsetting a weaker performance in mining and geothermal as the Mincon value proposition to the construction industry is increasingly recognised.
• Significant recovery in margin driven by operational and sourcing efficiencies, and volume recovery.
• Greenhammer to start its first "cost per foot" contract in Arizona.
• First installation of subsea anchor in the Orkney Islands.
• Continued investment in factory machinery and automation.
• The strong Q2 momentum, growing market opportunities, on-going operational initiatives and strong positioning in the construction industry will continue to contribute to the ongoing improvement in margins.
Joe Purcell, Chief Executive Officer, commenting on the results, said:
"I am pleased to report that the first half of 2025 showed a return to growth with higher revenue than the prior year but more importantly a significant recovery in our margins. This improved performance has been driven by increases in our construction revenues. This strong construction performance is due to a combination of our superior engineered product offering as well as onsite service support.
In conjunction with our improved sales, we have continued our focus on driving operational efficiencies across the Group, which is enhancing our margins and competitiveness.
Geographic markets
Our revenue in the Americas has seen an increase over the previous year. This is due to a strong performance in construction sales in North America, across a broad range of customers. Mining revenues grew in North America, but this was somewhat offset by reductions in South America as we moved away from a large low margin mining contract.
Our revenue in Europe/Middle East was up by 6% reflecting increases in construction revenue. In addition, we experienced an increase in our mining revenue, largely due to progress made in the Middle East, which is a positive development. Our water well/geothermal market was slow in the first half of 2025 reflecting a depressed Scandinavian housing market, however we see this picking up as the year progresses.
Our Africa revenues contracted versus prior year. However, our construction revenue increased in the region, while our mining revenue decreased due to challenging market conditions in West and Southern Africa. Our work to improve our competitive position in both of these regions is continuing and this should help to improve our revenues and, more importantly, margins over the medium term.
Geographic markets (continued)
Our Australia Pacific region was flat overall on prior year. Underlying this was a continued strong performance in our construction revenues from two large contracts in Tasmania and Western Australia. These increases were offset by a reduction in our mining revenues largely due to a poor first quarter on the East Coast due to heavy flooding and increased competition in the market. We expect an improvement in this region due to the extensive work being done on cost reduction to improve our competitive position in this important market for us.
Business Development
There is no doubt that the macroeconomic uncertainty due to the emerging global tariff situation has given pause for thought. On top of this, there has also been a rowing back on certain climate commitments which is concerning in the global push to reduce emissions. In the context of these challenges, it is important to take a step back and note the flexibility that our global spread gives us to try and mitigate tariffs. Also, the requirement of reducing emissions is directly related to increasing the efficiency of drilling which also impacts drilling costs. In that context, our engineering focus on efficiency remains a cornerstone in our push to win profitable market share.
On that note, our growing success in the construction sector is a reflection of the value proposition we represent with a market leading product range, backed up with experienced, application specific expertise, to deliver and exceed our customer expectations.
Our Greenhammer project is ready to deliver a yearlong cost per foot contract on a copper mine in Arizona. We have a team and service facility in place. This will be delivered in conjunction with our rig manufacturer partner and we are both optimistic about its future prospects.
Our collaboration with Subsea Micropiles reached an important milestone in April with the first installation of a subsea anchor in the Orkney Islands in Scotland. This positive development has been followed with significant strategic funding for Subsea Micropiles from Scottish and Japanese investors reflecting the ambition that both Countries have for the development of offshore wind.
Conclusion
It is pleasing to see the progress that we are making in the first half of this year. It does demonstrate that our business is moving in the right direction to increase revenues and more importantly margins and ROCE.
The increased opportunity we see in construction should be supplemented by growth that our product development can unlock in mining and in time with renewables. We are building positive momentum, and we need to remain focused on improving our competitive position, while delivering on the opportunities we have worked so hard to create. I would like to thank our dedicated teams around the world for their continued efforts and look forward to brighter days ahead."
Joseph Purcell
Chief Executive Officer
Key financial commentary
Market Industries
Revenue increased by 9% in the first half of 2025 compared to H1 2024. This increase was attributed to growth in construction industry revenue, while mining and waterwell/geothermal revenues declined during the same period. Foreign exchange movements impacted the Group's revenue growth by 1%.
Industry mix (by revenue)
| | H1 2025 | H1 2024 |
| · Construction | 48% | 36% |
| · Mining | 38% | 48% |
| · Waterwell / Geothermal | 14% | 16% |
Revenue from the construction industry increased by 47% during the period, compared to a 23% decrease in the same period of the previous year. Revenue in the industry became more globally diversified as investments were made to secure projects across our four regions, although project invoicing in this industry is inconsistent given the nature of large construction projects.
The Group started recognising construction revenue for two significant projects in Australia during the second half of 2024, with this continuing into the first half of 2025. Invoicing for these projects, located in Tasmania and Western Australia, was completed within the first half of the year.
We also successfully secured our first major port project in Africa and invoiced it in Q2 2025 although support for the project will continue through H2 2025 and into H1 2026. While opportunities in the African construction industry are limited, this project's success should go a long way to improve future prospects for our construction products and expertise.
The primary opportunities within the construction industry remain concentrated in developed markets, particularly in Europe and in North America. These regions have consistently represented our most significant markets in the construction industry.
Construction revenue in the Americas increased by 36% in H1 2025 compared to the same period in the previous year, following a 29% contraction in that earlier period. This growth is attributed to a wider customer base, primarily located in North America, with ongoing pursuit of significant projects in South America.
Construction revenue in the EME region experienced a partial recovery in the first half of 2025, increasing by 10%. This follows a notable contraction of 17% in H1 2024, attributable to elevated interest rates accumulated throughout 2023. Although interest rates began to decline at the half year in 2024, the reduction was insufficient to incentivise widespread borrowing for construction. Rates reached a more favourable level for the industry in 2025; however, it takes time for sector participants to adjust operations accordingly, as evidenced during Q2 2025.
Market analysis suggests the construction recovery will continue. In H1 2025, EME construction growth, similar to North America, was mainly driven by Mincon's supply to a large number of smaller projects in countries where we have a physical presence.
Mining revenue contracted by 13% in the first half of 2025 compared to the same period the previous year.
In the APAC region, mining revenue decreased by 40%, following a modest increase in H1 2024. The Australian mining supply market is highly price competitive, driven by neighbouring countries that maintain significant reliance on and investment in the sector. In response to these challenges, we are formulating strategies to strengthen collaboration with regional partners, thereby improving our access to mining opportunities. Additional contributing factors included a very wet first quarter in Northeast Australia and reduced exploration drilling activity.
Market Industries (continued)
Mining revenue in the Africa region contracted by 26% compared to H1 2024. Consistent with our approach in H2 2024, we reduced product supply to certain customers with slower payment histories. Additionally, a major mining client in the region is transitioning its operations from open-pit surface mining to underground mining. Our strategic and product focus remains on opportunities within open-pit mining.
The Americas, our largest mining region, saw flat growth versus H1 2024. North America grew 13%, while South America contracted by 29%, mainly due to the end of a major Chilean contract in Q2 2024, which the Group actively chose not to renew because margins did not meet Group requirements.
Mining revenue in the EME region increased by 28%, mainly due to customer activity in the Middle East. While the market is characterised by volatility, there are potential opportunities for mining through partnerships with suitable customers.
Revenue in the Geothermal/Waterwell industry contracted by 9% versus H1 2024, primarily due to the performance of the European market, which is mainly geothermal. This market slowed in Q2 2024, resulting in reduced revenue through the rest of the year, largely attributable to decreased residential and commercial construction activity in Northern Europe, a trend that continued into Q1 2025. With the reduction in interest rates, geothermal revenue began to recover in Q2 2025.
Earnings
Earnings have increased compared to the same period last year due to increased revenue and enhanced efficiencies from higher production volumes in factories.
Our margins are subject to variabilities based on the extent of in-house manufacturing completed within a given period. In the first half of 2025, in-house production increased compared to the same period in 2024, driven by higher product demand. Subsequently, there was a recovery in our factory margins across Europe.
As reported on throughout the previous year, competition for commoditised products increased across all industries, contributing to a decrease in revenues in 2024. In response, a comprehensive review of business operations was conducted in 2024, additional raw material supply chains were established, and partnerships were formed with manufacturers of commoditised products. Although these changes are ongoing, there has been an improvement in margins during the first half of 2025 as a result of these efforts.
Due to volatility in currency markets, FX has had an impact on the Group's financial result in H1 2025. The impact is mostly resulting from large pre-2025 non-euro denominated balance sheet items due to the level of intercompany trading from Europe to the USA. The Group already benefits from a significant level of natural hedging, which we have enhanced in H1 2025 through acquiring more raw material that is settled using US dollars.
Balance Sheet
Working capital absorbed a significant amount of cash in H1 2025. This was primarily attributed to an increase in inventory during the period, following a considerable decrease in inventory in 2024.
The increase in inventory can be attributed to two main factors. Firstly, our raw material and work-in-progress (WIP) amounts held increased at the end of H1 2025, excluding foreign exchange (FX) effects, as a result of integrating new supply chains. This adoption of additional supply chains is being managed carefully and is also part of our procurement risk. Secondly, inventory levels of Mincon products have been increased in anticipation of supplying major construction projects we expect to win in the second half of 2025. As these projects commence, we expect working capital demands to ease by year-end.
The debtor balance increased at the end of the period compared to the previous year end, primarily as a result of significant invoicing activity in June 2025 within the construction sector. Although the outstanding debtor balance currently exceeds our anticipated level slightly, we expect the number of debtor days to decline by year end.
In the first half of 2025, we commissioned property, plant, and equipment valued at €1.8 million, with the majority of this investment allocated to the replacement of ageing assets in certain factories. We intend to maintain this level of investment in the second half of 2025, with a significant portion dedicated to furthering the modernisation of our hammer plant via automation.
Balance Sheet (continued)
As a result of the ongoing root and branch review, €2.3 million cash was released into the business in the first half of 2025 through the sale of capital equipment. The largest portion of this amount resulted from the divestment of our building that previously accommodated Mincon's carbide manufacturing operations in Sheffield, UK.
During the first half of 2025, new borrowing was less than €0.5 million and was allocated for the commissioning of plant and equipment. Total borrowing decreased by more than €3.7 million, excluding foreign exchange effects, resulting in a ratio well below 2:1 with EBITDA.
During the reporting period, we made payments of €0.7 million towards historical acquisitions. Additionally, a final dividend for the year 2024 amounting to €2.2 million was disbursed in June 2025.
For further information, please contact:
Mincon Group plc Tel: +353 (61) 361 099
Joe Purcell CEO
Mark McNamara CFO
Tom Purcell COO
Davy Corporate Finance (Nominated Adviser, Euronext Growth Tel: +353 (1) 679 6363
Adviser and Joint Broker)
Anthony Farrell
Daragh O'Reilly
Shore Capital (Joint Broker) Tel: +44 (0) 20 7408 4090
Malachy McEntyre
Mark Percy
Daniel Bush
Mincon Group plc
2025 Half Year Financial Results
|
|
|
Condensed consolidated income statement For the 6 months ended 30 June 2025 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
| |||||||
|
| |
|
|
|
| |||||||||
|
|
Notes |
Unaudited Continuing Operations H1 2025 €'000 |
Unaudited Discontinued Operations H1 2025 €'000 (Note 10) |
Unaudited H1 2025 €'000 |
Unaudited H1 2024 €'000 | |||||||||
| Revenue.............................................................................................................................................................................. | 5 | 74,048 | 5 | 74,053 | 68,011 | |||||||||
| Cost of sales......................................................................................................................................................................... | 7 | (52,051) | (19) | (52,070) | (50,655) | |||||||||
| Gross profit ......................................................................................................................................................................... |
| 21,997 | (14) | 21,983 | 17,356 | |||||||||
| Operating costs..................................................................................................................................................................... | 7 | (18,047) | (108) | (18,155) | (17,240) | |||||||||
| Gain on disposal of property, plant and equipment...................................................................................................................... | 14 | 138 | 1,408 | 1,546 | 133 | |||||||||
| Operating profit.................................................................................................................................................................... | | 4,088 | 1,286 | 5,374 | 249 | |||||||||
| Finance income..................................................................................................................................................................... | | 45 | 7 | 52 | 49 | |||||||||
| Finance cost......................................................................................................................................................................... | | (1,135) | - | (1,135) | (1,271) | |||||||||
| Foreign exchange (loss)/gain................................................................................................................................................... | | (1,947) | 70 | (1,877) | 102 | |||||||||
| Movement on deferred consideration ....................................................................................................................................... | | (5) | - | (5) | 4 | |||||||||
| Profit/(Loss) before tax ......................................................................................................................................................... |
| 1,046 | 1,363 | 2,409 | (867) | |||||||||
| Income tax expense............................................................................................................................................................... |
| (377) | (327) | (704) | (116) | |||||||||
| Profit/(Loss) for the period..................................................................................................................................................... |
| 669 | 1,036 | 1,705 | (983) | |||||||||
|
|
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||||
| Earnings/(Loss) per Ordinary Share |
|
|
|
| | |||||||||
| Basic earnings/(loss) per share | 11 | 0.31c | 0.49c | 0.80c | (0.46c) | |||||||||
| Diluted earnings per share | 11 | 0.30c | 0.47c | 0.77c | (0.00c) | |||||||||
| Condensed consolidated statement of comprehensive income |
| |||
| For the 6 months ended 30 June 2025 |
| |||
|
|
| |||
| |
| | ||
| | Unaudited 2025 H1 | Unaudited 2024 H1 |
| |
|
| €'000 | €'000 |
| |
| Profit/(Loss) for the period............................................................................................................................ | 1,705 | (983) |
| |
| Other comprehensive income: | | |
| |
| Items that are or may be reclassified subsequently to profit or loss: | | |
| |
| Foreign currency translation - foreign operations............................................................................................... | (5,948) | 968 |
| |
| Other comprehensive (loss)/(profit) for the period............................................................................................... | (5,948) | 968 |
| |
| Total comprehensive loss for the period......................................................................................................... | (4,243) | (15) |
| |
| | |
| ||
The accompanying notes are an integral part of these financial statements.
| | | | | |
| Condensed Consolidated statement of financial position As at 30 June 2025 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| | | | Unaudited 30 June 2025 | 31 December 2024 |
|
|
| Notes | €'000 | €'000 |
|
|
|
|
|
|
| Non-Current Assets |
|
|
|
|
| Intangible assets and goodwill................................................................................................................................................. | | 13 | 38,670 | 40,099 |
| Property, plant and equipment................................................................................................................................................. | | 14 | 47,888 | 50,945 |
| Deferred tax asset ................................................................................................................................................................. | | 8 | 2,515 | 2,547 |
| Total Non-Current Assets...................................................................................................................................................... |
|
| 89,073 | 93,591 |
| Non-Current Assets Held for Resale |
| 10 | - | 751 |
| Current Assets | | |
| |
| Inventory.............................................................................................................................................................................. | | 15 | 68,041 | 67,335 |
| Trade and other receivables.................................................................................................................................................... | | 16 | 26,272 | 24,480 |
| Prepayments and other current assets....................................................................................................................................... | | | 9,711 | 9,773 |
| Current tax asset................................................................................................................................................................... | | 8 | 945 | 485 |
| Cash and cash equivalents..................................................................................................................................................... | | | 11,175 | 15,027 |
| Total Current Assets............................................................................................................................................................. |
|
| 116,144 | 117,100 |
| Total Assets......................................................................................................................................................................... |
|
| 205,217 | 211,442 |
| Equity | | |
| |
| Ordinary share capital............................................................................................................................................................ | | 9 | 2,125 | 2,125 |
| Share premium..................................................................................................................................................................... | | | 67,647 | 67,647 |
| Undenominated capital.......................................................................................................................................................... | | | 39 | 39 |
| Merger reserve...................................................................................................................................................................... | | | (17,393) | (17,393) |
| Share based payment reserve................................................................................................................................................. | | 12 | 2,766 | 2,573 |
| Foreign currency translation reserve......................................................................................................................................... | | | (13,386) | (7,438) |
| Retained earnings................................................................................................................................................................. | | | 104,237 | 104,762 |
| Total Equity.......................................................................................................................................................................... |
|
| 146,035 | 152,315 |
| Non-Current Liabilities | | |
| |
| Loans and borrowings............................................................................................................................................................ | | 17 | 19,189 | 23,770 |
| Deferred tax liability............................................................................................................................................................... | | 8 | 1,517 | 1,535 |
| Deferred consideration........................................................................................................................................................... | | 18 | 846 | 1,641 |
| Other liabilities...................................................................................................................................................................... | | | 227 | 385 |
| Total Non-Current Liabilities................................................................................................................................................... |
|
| 21,779 | 27,331 |
| Current Liabilities | | |
| |
| Loans and borrowings............................................................................................................................................................ | | 17 | 15,342 | 13,913 |
| Trade and other payables....................................................................................................................................................... | | | 11,614 | 9,170 |
| Accrued and other liabilities..................................................................................................................................................... | | | 9,675 | 8,095 |
| Current tax liability................................................................................................................................................................. | | 8 | 772 | 618 |
| Total Current Liabilities......................................................................................................................................................... |
|
| 37,403 | 31,796 |
| Total Liabilities..................................................................................................................................................................... |
|
| 59,182 | 59,127 |
| Total Equity and Liabilities...................................................................................................................................................... |
|
| 205,217 | 211,442 |
| | | | | |
The accompanying notes are an integral part of these financial statements.
| | | |
| Condensed consolidated statement of cash flows For the 6 months ended 30 June 2025
|
| |
| | Unaudited H1 2025 €'000 | Unaudited H1 2024 €'000 |
| Operating activities: |
|
|
| Profit/(loss) for the period.................................................................................................................................................... | 1,705 | (983) |
| Adjustments to reconcile profit to net cash provided by operating activities: | | |
| Depreciation..................................................................................................................................................................... | 3,819 | 4,048 |
| Amortisation of product development.................................................................................................................................... | 242 | 242 |
| Amortisation of intellectual property...................................................................................................................................... | 183 | 139 |
| Movement on deferred consideration.................................................................................................................................... | 5 | (4) |
| Finance cost..................................................................................................................................................................... | 1,135 | 1,271 |
| Finance income................................................................................................................................................................ | (52) | (49) |
| Gain on sale of property, plant and equipment........................................................................................................................ | (1,546) | (133) |
| Income tax expense........................................................................................................................................................... | 704 | 116 |
| Other non-cash movements................................................................................................................................................ | 1,890 | (109) |
| | 8,085 | 4,538 |
| | | |
| Changes in trade and other receivables................................................................................................................................ | (3,062) | (3,541) |
| Changes in prepayments and other current assets.................................................................................................................. | (197) | 574 |
| Changes in inventory......................................................................................................................................................... | (4,139) | 1,055 |
| Changes in trade and other payables.................................................................................................................................... | 4,132 | 2,291 |
| Cash provided by operations............................................................................................................................................... | 4,819 | 4,917 |
| | | |
| Interest received................................................................................................................................................................ | 52 | 49 |
| Interest paid..................................................................................................................................................................... | (1,135) | (1,271) |
| Income taxes paid............................................................................................................................................................. | (1,023) | (1,630) |
| Net cash provided by operating activities............................................................................................................................ | 2,713 | 2,065 |
|
| | |
| Investing activities | | |
| Purchase of property, plant and equipment............................................................................................................................ | (1,792) | (2,534) |
| Proceeds from the sale of property, plant and equipment......................................................................................................... | 2,337 | 313 |
| Payment of deferred consideration....................................................................................................................................... | (195) | (202) |
| Investment in acquired intangible assets............................................................................................................................... | (485) | (303) |
| Net cash used in investing activities................................................................................................................................... | (135) | (2,726) |
|
| | |
| Financing activities | | |
| Dividends paid.................................................................................................................................................................. | (2,230) | (2,231) |
| Repayment of borrowings................................................................................................................................................... | (2,567) | (2,270) |
| Repayment of lease liabilities.............................................................................................................................................. | (1,667) | (1,546) |
| Drawdown of loans............................................................................................................................................................ | 484 | 1,969 |
| Net cash used in financing activities................................................................................................................................... | (5,980) | (4,078) |
|
| | |
| Effect of foreign exchange rate changes on cash.................................................................................................................... | (450) | 25 |
| Net decrease in cash and cash equivalents......................................................................................................................... | (3,852) | (4,714) |
| | | |
| Cash and cash equivalents at the beginning of the year........................................................................................................... | 15,027 | 20,482 |
| Cash and cash equivalents at the end of the period.............................................................................................................. | 11,175 | 15,768 |
| Cash and cash equivalents for discontinued operations........................................................................................................... | 1,096 | - |
| Cash and cash equivalents for continuing operations.............................................................................................................. | 10,079 | 15,768 |
| Cash and cash equivalents at the end of the period.............................................................................................................. | 11,175 | 15,768 |
| | | |
The accompanying notes are an integral part of these financial statements.
Condensed consolidated statement of changes in equity for the 6 months ended 30 June 2025
|
| Share capital | Share premium | Merger reserve | Un-denominated capital | Share based payment reserve | Foreign currency translation reserve | Retained earnings | Unaudited Total equity |
| ||||||||
| | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 |
| ||||||||
| |
|
|
|
|
| ||||||||||||
| Balances at 1 July 2024 | 2,125 | 67,647 | (17,393) | 39 | 2,398 | (6,898) | 104,244 | 152,162 | |||||||||
| Comprehensive income: |
|
|
|
|
|
|
|
| |||||||||
| Profit for the period | - | - | - | - | - | - | 2,749 | 2,749 | |||||||||
| Other comprehensive income: |
|
|
|
|
|
|
|
| |||||||||
| Foreign currency translation | - | - | - | - | - | (540) | - | (540) | |||||||||
| Total comprehensive income | | | | | | (540) | 2,749 | 2,209 | |||||||||
| Transactions with Shareholders: |
|
|
|
|
|
|
|
| |||||||||
| Share-based payments | - | - | - | - | 175 | - | - | 175 | |||||||||
| Dividend payment | - | - | - | - | - | - | (2,231) | (2,231) | |||||||||
| Total transactions with Shareholders | - | - | - | - | 175 | - | (2,231) | (2,056) | |||||||||
| Balances at 31 December 2024 | 2,125 | 67,647 | (17,393) | 39 | 2,573 | (7,438) | 104,762 | 152,315 | |||||||||
| Comprehensive income: |
|
|
|
|
|
|
|
| |||||||||
| Loss for the period | - | - | - | - | - | - | 1,705 | 1,705 | |||||||||
| Other comprehensive income: |
|
|
|
| |
|
|
| |||||||||
| Foreign currency translation | - | - | - | - | - | (5,948) | - | (5,948) | |||||||||
| Total comprehensive income | | | | | | (5,948) | 1,705 | (4,243) | |||||||||
| Transactions with Shareholders: |
|
|
|
| |
|
|
| |||||||||
| Share-based payments | - | - | - | - | 193 | - | - | 193 | |||||||||
| Dividend payment | - | - | ,- | - | - | - | (2,230) | (2,230) | |||||||||
| Total transactions with Shareholders | - | - | - | - | 193 | - | (2,230) | (2,037) | |||||||||
| Balances at 30 June 2025 | 2,125 | 67,647 | (17,393) | 39 | 2,766 | (13,386) | 104,237 | 146,035 | |||||||||
The accompanying notes are an integral part of these financial statement.
Notes to the condensed consolidated interim financial statements
1 Description of business
Mincon Group plc ("the Company") is a company incorporated in the Republic of Ireland. The unaudited condensed consolidated interim financial statements of the Company for the six months ended 30 June 2025 (the "Interim Financial Statements") include the Company and its subsidiaries (together referred to as the "Group"). The Interim Financial Statements were authorised for issue by the Directors on 05 August 2025.
2. Basis of preparation
The Interim Financial Statements have been prepared in accordance with IAS 34, 'Interim Financial Reporting', as adopted by the EU. The Interim Financial Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2024 as set out in the 2024 Annual Report (the "2024 Accounts"). The Interim Financial Statements do, however, include selected explanatory notes to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
The Interim Financial Statements do not constitute statutory financial statements. The statutory financial statements for the year ended 31 December 2024, extracts from which are included in these Interim Financial Statements, were prepared under IFRS as adopted by the EU and will be filed with the Registrar of Companies together with the Company's 2024 annual return. They are available from the Company website www.mincon.com and, when filed, from the registrar of companies. The auditor's report on those statutory financial statements was unqualified.
The Interim Financial Statements are presented in Euro, rounded to the nearest thousand, which is the functional currency of the parent company and also the presentation currency for the Group's financial reporting.
The financial information contained in the Interim Financial Statements has been prepared in accordance with the accounting policies applied in the 2024 Accounts.
3. Use of estimates and judgements
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses. The judgements, estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. In preparing the Interim Financial Statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the 2024 Accounts.
4. Changes in material accounting policy information
There have been no changes in material accounting policy information applied in these Interim Financial Statements, they are the same as those applied in the last annual audited financial statements.
5. Revenue
|
| H1 2025 | H1 2024 |
|
| €'000 | €'000 |
| Product revenue: | | |
| Sale of Mincon product........................................................................................................................................... | 59,825 | 54,828 |
| Sale of third-party product....................................................................................................................................... | 14,228 | 13,183 |
| Total revenue (1)...................................................................................................................................................... | 74,053 | 68,011 |
(1) Total revenue in H1 2025 includes revenue from discontinued operations.
6. Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). Our CODM has been identified as the Board of Directors.
Having assessed the aggregation criteria contained in IFRS 8 operating segments and considering how the Group manages its business and allocates resources, the Group has determined that it has one reportable segment. In particular the Group is managed as a single business unit that sells drilling equipment, primarily manufactured by Mincon manufacturing sites.
Entity-wide disclosures
The business is managed on a worldwide basis but operates manufacturing facilities and sales offices in Ireland, Sweden, Finland, South Africa, Australia, the United States and Canada and sales offices in other locations including Australia, South Africa, Finland, Spain, Namibia, Ghana, France, Sweden, Canada, Chile and Peru. In presenting information on geography, revenue is based on the geographical location of customers and non-current assets based on the location of these assets.
Revenue by region (by location of customers):
| |
|
|
| | H1 2025 | H1 2024 |
| | €'000 | €'000 |
| Region: |
|
|
| Europe, Middle East, Africa.................................................................................................................................................... | 36,255 | 32,952 |
| Americas............................................................................................................................................................................... | 30,203 | 26,303 |
| Australasia............................................................................................................................................................................. | 7,176 | 7,228 |
| Ireland................................................................................................................................................................................... | 419 | 1,528 |
| Total revenue (1)..................................................................................................................................................................... | 74,053 | 68,011 |
(1) Total revenue in H1 2025 includes revenue from discontinued operations.
| |
|
|
| Non-current assets by region (location of assets): |
| |
|
| 30 June 2025 | 31 December 2024 |
|
| €'000 | €'000 |
| Region: |
|
|
| Europe, Middle East, Africa................................................................................................................................................ | 63,526 | 64,789 |
| Americas........................................................................................................................................................................... | 13,733 | 16,088 |
| Australasia......................................................................................................................................................................... | 9,299 | 10,167 |
| Total non-current assets(1) ................................................................................................................................................ | 86,558 | 91,044 |
| (1) Non-current assets exclude deferred tax assets. |
| |
7. Cost of Sales and operating expenses
Included within cost of sales, operating costs were the following major components:
| Cost of sales |
|
|
|
| H1 2025 | H1 2024 |
|
| €'000 | €'000 |
| Raw materials.......................................................................................................................................................................... | 19,453 | 20,459 |
| Third-party product purchases.................................................................................................................................................. | 11,019 | 10,222 |
| Employee costs....................................................................................................................................................................... | 10,145 | 9,961 |
| Depreciation (note 14).............................................................................................................................................................. | 2,674 | 2,827 |
| In bound costs on purchases.................................................................................................................................................... | 1,847 | 1,548 |
| Energy costs........................................................................................................................................................................... | 1,122 | 1,289 |
| Maintenance of machinery........................................................................................................................................................ | 981 | 795 |
| Subcontracting........................................................................................................................................................................ | 2,930 | 1,639 |
| Amortisation of product development....................................................................................................................................... | 242 | 242 |
| Other....................................................................................................................................................................................... | 1,657 | 1,673 |
| Total cost of sales (1) .............................................................................................................................................................. | 52,070 | 50,655 |
(1) Total cost of sales in H1 2025 includes cost of sales from discontinued operations.
Operating costs
| | |
|
|
| |
| H1 2025 | H1 2024 |
| |
| €'000 | €'000 |
| Employee costs....................................................................................................................................................................... | 10,246 | 10,203 | |
| Depreciation (note 14).............................................................................................................................................................. | 1,145 | 1,221 | |
| Amortisation of acquired intellectual property............................................................................................................................ | 183 | 139 | |
| Travel...................................................................................................................................................................................... | 814 | 1,075 | |
| Other....................................................................................................................................................................................... | 5,767 | 4,602 | |
| Total other operating costs (1).................................................................................................................................................. | 18,155 | 17,240 | |
(1) Total operating costs in H1 2025 includes operating costs from discontinued operations.
| Employee information | | |
| | H1 2025 | H1 2024 |
| | €'000 | €'000 |
| Wages and salaries............................................................................................................................................. | 17,378 | 17,265 |
| Social security costs........................................................................................................................................... | 1,680 | 1,602 |
| Pension costs of defined contribution plans......................................................................................................... | 1,140 | 1,140 |
| Share based payments (note 12).......................................................................................................................... | 193 | 157 |
| Total employee costs(1)...................................................................................................................................... | 20,391 | 20,164 |
(1) Total employee costs in H1 2025 includes employee costs from discontinued operations.
|
The average number of employees was as follows:
|
|
|
|
| H1 2025 | H1 2024 |
|
| Number | Number |
| Sales and distribution...................................................................................................................................... | 119 | 125 |
| General and administration............................................................................................................................... | 75 | 74 |
| Manufacturing, service and development.......................................................................................................... | 316 | 335 |
| Average number of persons employed........................................................................................................... | 510 | 534 |
8. Income Tax
The Group's consolidated effective tax rate in respect of operations for the six months ended 30 June 2024 was 29% (30 June 2024: (-13%). The effective rate of tax is forecast at 25% for 2025. The tax charge for the six months ended 30 June 2025 of €704,000 (30 June 2024: €116,000) includes income tax expense relating to discontinued operations and deferred tax relating to movements in provisions, net operating losses forward and the temporary differences for property, plant and equipment recognised in the income statement.
The net current tax asset/(liability) at period-end was as follows:
| | 30 June 2025 | 31 December 2024 |
| | €'000 | €'000 |
| Current tax prepayments...................................................................................................................................... | 945 | 485 |
| Current tax payable............................................................................................................................................. | (772) | (618) |
| Net current tax asset/(liability).............................................................................................................................. | 173 | (133) |
The net deferred tax liability at period-end was as follows:
| | 30 June 2025 | 31 December 2024 |
| | €'000 | €'000 |
| Deferred tax asset................................................................................................................................................ | 2,515 | 2,547 |
| Deferred tax liability.............................................................................................................................................. | (1,517) | (1,535) |
| Net deferred tax asset.......................................................................................................................................... | 998 | 1,012 |
9. Share capital
|
|
|
|
| Allotted, called- up and fully paid up shares | Number | €000 |
| 01 January 2025........................................................................................................................................................... | 212,472,413 | 2,125 |
| 30 June 2025................................................................................................................................................................ | 212,472,413 | 2,125 |
| | | |
Share issuances
| On 26 November 2013, Mincon Group plc was admitted to trading on the Enterprise Securities Market (ESM) of the Euronext Dublin and the Alternative Investment Market (AIM) of the London Stock Exchange.
10. Discontinued Operations and Non-current Assets Held for Resale
The amounts presented in the 30 June 2025 condensed consolidated income statement under discontinued operations relate to the Mincon Carbide Limited which the Board of Directors made the decision to cease trading during the second half of 2024.
As at 31 December 2024, all contracts with customers in Mincon Carbide Limited were fulfilled and all inventory and portion of the property and equipment have been sold. Further, few employees are still employed to execute outstanding administrative activities.
The remaining property and equipment was sold in January 2025 and a gain on sale on of property and equipment of €1.4 million is presented as discontinued operations for the six months ended 30 June 2025.
|
11. Earnings/(Loss) per share
Basic earnings per share (EPS) is computed by dividing the profit for the period available to ordinary shareholders by the weighted average number of Ordinary Shares outstanding during the period. Diluted earnings per share is computed by dividing the profit for the period by the weighted average number of Ordinary Shares outstanding and, when dilutive, adjusted for the effect of all potentially dilutive shares. The following table sets forth the computation for basic and diluted net profit per share for the periods ended 30 June:
| | H1 2025 Continuing Operations | H1 2025 Discontinued Operations | H1 2025 | H1 2024 | |||
| Numerator (amounts in €'000): |
|
| | | |||
| Profit/(Loss) attributable to owners of the Parent ........................................................................................... | 669 | 1,036 | 1,705 | (983) | |||
| Denominator (Number):
Diluted weighted average shares outstanding……………………………………………. | | | | | |||
| 212,472,413 | 212,472,413 | 212,472,413 | 212,472,413 | ||||
| 740,000 | 740,000 | 740,000 | 830,000 | ||||
| 7,110,000 | 7,110,000 | 7,110,000 | 2,860,000 | ||||
| 220,322,413 | 220,322,413 | 220,322,413 | 216,162,413 | ||||
| Earnings/(Loss) per Ordinary Share | | | | | |||
| Basic earnings/(loss) per share, €.................................................................................................................. Diluted earnings per share, €......................................................................................................................... | 0.31c 0.30c | 0.49c 0.47c | 0.80c 0.77c | (0.46c) (0.00c) |
For the period ended 30 June 2024, the inclusion of potentially issuable ordinary shares would result in a decrease in the loss per share, thus, they are considered to be anti-dilutive and as such, a diluted loss per share was not included.
12. Share based payment
The vesting conditions of the scheme state that the minimum growth in EPS shall be CPI plus 5% per annum, compounded annually, over the relevant three accounting years up to the share award of 100% of the participant's basic salary. Where awards have been granted to a participant in excess of 100% of their basic salary, the performance condition for the element that is in excess of 100% of basic salary is that the minimum growth in EPS shall be CPI plus 10% per annum, compounded annually, over the three accounting years.
| Reconciliation of outstanding share awards | Number of Awards in thousands |
| Outstanding on 1 January 2025................................................................................................................... | 780 |
| Forfeited during the period......................................................................................................................... | (40) |
| Exercised during the period........................................................................................................................ | - |
| Granted during the period........................................................................................................................... | - |
| Outstanding at 30 June 2025..................................................................................................................... | 740 |
| Reconciliation of outstanding share options | Number of Options in thousands |
| Outstanding on 1 January 2025................................................................................................................... | 2,860 |
| Forfeited during the period......................................................................................................................... | (110) |
| Exercised during the period........................................................................................................................ | - |
| Granted during the period........................................................................................................................... | 4,360 |
| Outstanding at 30 June 2025..................................................................................................................... | 7,110 |
13. Intangible Assets and Goodwill
|
| Internally generated intangible assets | Goodwill |
Acquired intellectual property | Total |
|
| €'000 | €'000 | €'000 | €'000 |
| Balance at 1 January 2025.......................................................................................................................... | 6,180 | 31,767 | 2,152 | 40,099 |
| Amortisation of product development.......................................................................................................... | (242) | - |
| (242) |
| Acquired intellectual property....................................................................................................................... | - | - | 485 | 485 |
| Amortisation of intellectual property............................................................................................................. | - | - | (183) | (183) |
| Foreign currency translation differences....................................................................................................... | - | (773) | (716) | (1,489) |
| Balance at 30 June 2025............................................................................................................................. | 5,938 | 30,994 | 1,738 | 38,670 |
14. Property, Plant and Equipment
Capital expenditure in the first half-year amounted to €1.8 million (30 June 2024: €2.5 million), of which €1.5 million was invested in plant and equipment (30 June 2024: €2.2 million). Gain on sale of property and equipment in the first half amounted to €1.5 million (30 June 2024: €133,000). The depreciation charge for property, plant and equipment is recognised in the following line items in the income statement:
| | H1 2025 | H1 2024 |
| | €'000 | €'000 |
| Cost of sales (note 7)...................................................................................................................................... | 2,674 | 2,827 |
| Operating costs (note 7)................................................................................................................................... | 1,145 | 1,221 |
| Total depreciation charge for property, plant and equipment.......................................................................... | 3,819 | 4,048 |
15. Inventory
| | 30 June 2025 | 31 December 2024 |
| | €'000 | €'000 |
| Finished goods........................................................................................................................................................... | 45,566 | 44,807 |
| Work-in-progress......................................................................................................................................................... | 8,603 | 9,309 |
| Raw materials.............................................................................................................................................................. | 13,872 | 13,219 |
| Total inventory........................................................................................................................................................... | 68,041 | 67,335 |
The Group recorded an impairment of €24,000 against inventory to take account of net realisable value during the period ended 30 June 2025 (30 June 2024: €NIL).
16. Trade and other receivables
| | 30 June 2025 | 31 December 2024 |
| |
| | €'000 | €'000 |
| |
| Gross receivable..................................................................................................................................................... | 27,482 | 26,165 |
| |
| Provision for impairment......................................................................................................................................... | (1,210) | (1,685) |
| |
| Net trade and other receivables | 26,272 | 24,480 |
| |
|
| Provision for impairment | |||
| | €'000 | |||
| Balance at 1 January 2025.................................................................................................................................................. | (1,685) | |||
| Deduction.......................................................................................................................................................................... | 475 | |||
| Balance at 30 June 2025 ................................................................................................................................................... | (1,210) | |||
16. Trade and other receivables (continued)
The following table provides the information about the exposure to credit risk and ECL's for trade receivables as at 30 June 2025.
| | Weighted average loss rate % | Gross carrying amount €'000 | Loss allowance €'000 |
| Current (not past due)................................................................................................................................................. | 1% | 19,000 | 280 |
| 1-30 days past due..................................................................................................................................................... | 8% | 3,821 | 286 |
| 31-60 days past due................................................................................................................................................... | 12% | 1,026 | 123 |
| 61 to 90 days ............................................................................................................................................................ | 7% | 3,341 | 227 |
| More than 90 days past due ....................................................................................................................................... | 100% | 294 | 294 |
| Net trade and other receivables................................................................................................................................... | | 27,482 | 1,210 |
The following table provides the information about the exposure to credit risk and ECL's for trade receivables as at 31 December 2024.
| | Weighted average loss rate % | Gross carrying amount €'000 | Loss allowance €'000 |
| Current (not past due)................................................................................................................................................. | 2% | 16,800 | 374 |
| 1-30 days past due..................................................................................................................................................... | 12% | 3,825 | 459 |
| 31-60 days past due................................................................................................................................................... | 19% | 1,793 | 340 |
| 61 to 90 days ............................................................................................................................................................ | 11% | 3,624 | 389 |
| More than 90 days past due ....................................................................................................................................... | 100% | 123 | 123 |
| Net trade and other receivables................................................................................................................................... | | 26,165 | 1,685 |
17. Loans, borrowings and lease liabilities
|
| | 30 June 2025 | 31 December 2024 |
|
| Maturity | €'000 | €'000 |
| Loans and borrowings............................................................................................................................................... | 2025-2036 | 27,716 | 29,802 |
| Lease liabilities.......................................................................................................................................................... | 2025-2032 | 6,815 | 7,881 |
| Total Loans, borrowings and lease liabilities |
| 34,531 | 37,683 |
| Current | | 15,342 | 13,913 |
| Non-current | | 19,189 | 23,770 |
The Group has a number of bank loans and lease liabilities with a mixture of variable and fixed interest rates. The Group has not been in default on any of these debt agreements during any of the periods presented. The loans are secured against the assets for which they have been drawn down for.
18. Financial Risk Management
The Group is exposed to various financial risks arising in the normal course of business. Our financial risk exposures are predominantly related to changes in foreign currency exchange rates as well as the creditworthiness of our financial asset counterparties.
The Interim Financial Statements do not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the 2024 Accounts. There have been no changes in our risk management policies since year-end and no material changes in our interest rate risk.
18. Financial Risk Management (continued)
| a) Liquidity and Capital |
The Group defines liquid resources as the total of its cash, cash equivalents and short term deposits. Capital is defined as the Group's shareholders' equity and borrowings.
| The Group's objectives when managing its liquid resources are: • To maintain adequate liquid resources to fund its ongoing operations and safeguard its ability to continue as a going concern, so that it can continue to create value for investors; • To have available the necessary financial resources to allow it to invest in areas that may create value for shareholders; and • To maintain sufficient financial resources to mitigate against risks and unforeseen events. |
Liquid and capital resources are monitored on the basis of the total amount of such resources available and the Group's anticipated requirements for the foreseeable future. The Group's liquid resources and shareholders' equity at 30 June 2025 and 31 December 2024 were as follows:
| | 30 June 2025 | 31 December 2024 |
|
| €'000 | €'000 |
| Cash and cash equivalents ............................................................................................................................... | 11,175 | 15,027 |
| Loans and borrowings....................................................................................................................................... | 34,531 | 37,683 |
| Shareholders' equity ........................................................................................................................................ | 146,035 | 152,315 |
b) Foreign currency risk
The Group is a multinational business operating in a number of countries and the euro is the presentation currency. The Group, however, does have revenues, costs, assets and liabilities denominated in currencies other than euro. Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. The resulting monetary assets and liabilities are translated into the appropriate functional currency at exchange rates prevailing at the reporting date and the resulting gains and losses are recognised in the income statement. The Group manages some of its transaction exposure by matching cash inflows and outflows of the same currencies. The Group does not engage in hedging transactions and therefore any movements in the primary transactional currencies will impact profitability. The Group continues to monitor appropriateness of this policy.
The Group's global operations create a translation exposure on the Group's net assets since the financial statements of entities with non-euro functional currencies are translated to euro when preparing the consolidated financial statements. The Group does not use derivative instruments to hedge these net investments.
The principal foreign currency risks to which the Group is exposed relate to movements in the exchange rate of the euro against US dollar, South African rand, Australian dollar, Swedish krona and Canadian dollar.
The Group has material subsidiaries with a functional currency other than the euro, such as US dollar, Australian dollar, South African rand, Canadian dollar and Swedish krona.
In 2025, 56% (2024: 55%) of Mincon's revenue €74.1 million (30 June 2024: €68.0 million) was generated in Australian Dollar, Swedish Krona and US Dollar. The majority of the Group's manufacturing base has a Euro, US dollar or Swedish krona cost base. While Group management makes every effort to reduce the impact of this currency volatility, it is impossible to eliminate or significantly reduce given the fact that the highest grades of our key raw materials are either not available or not denominated in these markets and currencies. Additionally, the ability to increase prices for our products in these jurisdictions is limited by the current market factors.
Currency also has a significant transactional impact on the Group as outstanding balances in foreign currencies are retranslated at closing rates at each period end. The changes in the foreign currencies have either weakened or strengthened, resulting in a foreign exchange loss being recognised in other comprehensive income and a significant movement in foreign currency translation reserve.
18. Financial Risk Management (continued)
Average and closing exchange rates for the Group's primary currency exposures were as disclosed in the table below for the period presented.
|
| 30 June 2025 | H1 2025 | 31 December 2024 | H1 2024 |
| Euro exchange rates | Closing | Average | Closing | Average |
| US Dollar.......................................................................................................................................................................... | 1.17 | 1.09 | 1.04 | 1.08 |
| Australian Dollar ............................................................................................................................................................... | 1.79 | 1.72 | 1.67 | 1.60 |
| Canadian Dollar................................................................................................................................................................. | 1.60 | 1.54 | 1.49 | 1.46 |
| South African Rand ........................................................................................................................................................... | 20.84 | 20.09 | 19.55 | 19.67 |
| Swedish Krona ................................................................................................................................................................. | 11.13 | 11.09 | 11.46 | 11.33 |
c) Fair values
Financial instruments carried at fair value
The deferred consideration payable represents management's best estimate of the fair value of the amounts that will be payable, discounted as appropriate using a market interest rate. The fair value was estimated by assigning probabilities, based on management's current expectations, to the potential pay-out scenarios. The fair value of deferred consideration is not dependent on the future performance of the acquired businesses against predetermined targets and on management's current expectations thereof.
Movements in the year in respect of Level 3 financial instruments carried at fair value
The movements in respect of the financial assets and liabilities carried at fair value in the period ended to 30 June 2025 are as follows:
|
| Deferred consideration |
|
| €'000 |
| Balance at 1 January 2025.......................................................................................................................................... | 1,641 |
| Cash payment............................................................................................................................................................ | (680) |
| Foreign currency translation adjustment....................................................................................................................... | 4 |
| Unwinding of discount on deferred consideration......................................................................................................... | (119) |
| Balance at 30 June 2025............................................................................................................................................. | 846 |
19. Commitments
The following capital commitments for the purchase of property, plant and equipment had been authorised by the directors at 30 June 2025:
| | Total |
| | €'000 |
| Contracted for......................................................................................................................................................................... | 800 |
| Not contracted for .................................................................................................................................................................. | 410 |
| Total ...................................................................................................................................................................................... | 1,210 |
20. Litigation
The Group is not involved in legal proceedings that could have a material adverse effect on its results or financial position.
21. Related Parties
The Group has relationships with its subsidiaries, directors and senior key management personnel. All transactions with subsidiaries eliminate on consolidation and are not disclosed.
As at 30 June 2025, the share capital of Mincon Group plc was 56.32% owned by Kingbell Company (31 December 2024 56.32%), this company is ultimately controlled by Patrick Purcell and members of the Purcell family. Patrick Purcell retired as a director of the Company on 19 May 2025. The Group paid the final dividend for 2024 in June 2025, Kingbell Company receive €1.3 million.
There were no other related party transactions in the half year ended 30 June 2025 that affected the financial position or the performance of the Company during that period and there were no changes in the related party transactions described in the 2024 Accounts that could have a material effect on the financial position or performance of the Company in the same period.
22. Subsequent events
There have been no significant events subsequent to the period end 30 June 2025 affecting the Group.
23. Approval of financial statements
The Board of Directors approved the Interim Financial Statements for the six months ended 30 June 2025 on
05 August 2025.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.