22 September 2021
By Maynard Paton
Results summary for Mincon (MCON):
- A very mixed H1 performance, as record €67m six-month revenue contrasted with profit down as much as 13% due to general pandemic disruption.
- European construction revenue encouragingly climbed 50% supported by numerous smaller projects and innovative sector products.
- Customer testing of the “disruptive” Greenhammer system remains on hold, although other developments are now “poised to deliver“.
- The move to selling a wider range of equipment direct to customers continues to limit margins/returns on equity/cash flow and raise doubts about an indisputable competitive ‘moat’.
- While a P/E of 20 is not a clear bargain, the long-time family management expects a stronger H2 and claims to have established a “platform for future growth“. I continue to hold.