Mincon: Encouraging Q3 As Margins Hit 18%

10 November 2015
By Maynard Paton

Quick update on Mincon (MCON).

Event: Q3 trading update published 10 November

Summary: A very pleasant statement from this drill manufacturer, which confirmed earlier trading improvements had been sustained. Indeed, revenue, profit and — very importantly — cash flow, all advanced to seemingly defy the mining-sector downturn. I just wonder if the recent appointment of Joe Purcell, son of the group’s founder, as chief exec has had an immediate impact. Profit extrapolations are now showing an interesting valuation and I continue to hold.

Read moreMincon: Encouraging Q3 As Margins Hit 18%

Mincon: Tough Results Showcase Improved Q2, 15% Margins And £24m Net Cash

24 August 2015
By Maynard Paton

Quick update on Mincon (MCON).

Event: Interim results published 19 August.

Summary: These figures were not too disappointing given MCON’s lacklustre first-quarter statement. A definite improvement occurred during Q2 and 15% margins suggest MCON retains a respectable competitive position. Nonetheless, the firm’s acquisition strategy remains unproven and working-capital demands are still very high. While a P/E valuation of 12-14 does not tempt me to top up, I continue to hold.

Read moreMincon: Tough Results Showcase Improved Q2, 15% Margins And £24m Net Cash

Mincon: Have Q1 Profits Just Slumped 24%?

26 May 2015
By Maynard Paton

Quick update on Mincon (MCON).

Event: Trading statement published 26 May.

Summary: A lacklustre Q1 update. Although underlying revenue managed to remain flat, margins have slumped as MCON’s drills and bits continue to face pricing pressure. I reckon the group’s Q1 profits may have fallen by 24%, while the net cash position is somewhat lower, too. I just hope the inherent strengths of this business can show through during the rest of 2015. I continue to hold. 

Read moreMincon: Have Q1 Profits Just Slumped 24%?

Mincon: So Here’s The Drill On A Recent Buy

15 April 2015
By Maynard Paton

Today I’m revealing one of the two new investments I’ve made during recent months.

The company in question is Mincon (MCON), a specialist engineer that designs, manufactures and sells drilling equipment for miners. I bought the shares during February and March 2015 at an average of 44.6p including all costs. The mid-price is now 54p.

All told, I feel this £114m Irish business is an excellent fit for my portfolio. Important attractions include a respectable competitive position, high margins, a cash-flush balance sheet and very favourable family management. A languishing share price and a possible P/E of just 10 also clinched it for me.

However, MCON is by no means perfect. In particular, the group is dependent on the vagaries of the mining sector, has an ambitious acquisition plan and does not boast the greatest of free cash flow.

A wide bid-offer spread and 71% boardroom ownership may put some people off, too.

Read moreMincon: So Here’s The Drill On A Recent Buy