21 February 2023
By Maynard Paton
Results summary for Mincon (MCON):
- A very satisfactory performance buoyed by healthy post-pandemic orders, showing revenue up 27% and profit up 18% to set new H1 records.
- Positive progress was reported throughout the group, with construction-related sales up 55% helped by greater demand for specialist drilling.
- The long-awaited Greenhammer system has won its first commercial contract and now offers “transformational potential” to MCON and the mining industry.
- Greenhammer and other new developments may hopefully improve MCON’s financials, given the group’s modest margin, significant stock level, net debt and poor cash conversion.
- The shares do not appear outrageously expensive on a possible 16x P/E, although the group’s expansion led by the dominant family owners has yet to deliver superior returns to outsiders. I continue to hold.