24 June 2023
By Maynard Paton
FY 2022 results summary for Mincon (MCON):
- A positive performance buoyed by healthy post-pandemic orders, showing revenue up 18% (to €170m) and profit up 9% (to €20m) to set new FY records.
- Bumper construction income, greater direct sales and increased US revenue counterbalanced weaker mining activity in Europe and Australia.
- Rig problems have beset early revenue from the “transformational” Greenhammer system, which management now believes has a 15-year useful life.
- A €14m working-capital investment pushed stock levels to a huge €77m, squeezed free cash flow to only €2m and raised questions about the debt-funded dividend.
- MCON’s “superior technical and innovative technology” is still to translate into superior financials, with obvious evidence of smart capital-allocation decisions remaining elusive. I continue to hold.