(Alliance News) - Mincon Group PLC on Monday said it sees an "improved global environment" for the year ahead as it posted a flat dividend and a contraction in revenue.
The Shannon, Ireland-based rock drilling tool manufacturer said pretax profit fell 63% to EUR3.3 million in 2024, from EUR8.9 million in 2023.
This decline was driven by a 7.1% contraction in revenue to EUR145.9 million from EUR156.9 million.
Mining revenue fell 7%, said Mincon, as it recorded contractions across three of the four mining regions.
It noted that Europe and the Middle East realised a 71% revenue improvement as customers resumed normal ordering patterns.
Waterwell/geothermal revenue fell 23% owing to a reduction in new building construction in Northern Europe, where it noted that geothermal energy is the primary source of heating.
Construction revenue was flat with the prior year as the firm generated its first year of significant revenue in the Asia-Pacific region. This offset a decrease in the firm's main construction markets in North America and Europe, noted Mincon.
Mincon proposed a final dividend per share of 1.05 euro cents, bringing the year's total to 2.10 cents, flat with 2023.
Shares in Mincon rose 2.6% to 36.94p on Monday morning in London.
"2024 has been a tough year for Mincon but I am pleased to report that we see an improved global environment in the year ahead for all our target markets. The weakness we saw at the end of 2023, continued through H1 2024, but with the moderation of global interest rates and a general uptick in business confidence, we did see an increase in activity in H2 2024 which led to a stronger performance, and this improvement has continued into early 2025," said Chief Executive Joe Purcell.
"I have no doubt that there will be challenges ahead but if we face these with the commitment we have demonstrated in the recent period, we will prevail, and I am excited and confident in the future outlook for the business."
By Christopher Ward, Alliance News reporter
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