Engineering company Mincon has reported a 40% increase in revenues for the three months to the end of March compared to the same time last year on the back of acquisitions.
In an interim management statement, Mincon said the first quarter of the year generally has the least amount of activity in its key markets - surface mining, quarrying, waterwell and geothermal.
It said this is due to winter shutdowns in the Northern hemisphere and summer holidays in the Southern hemisphere.
The company said that revenue from manufacturing products rose by 2%, while sales of third party trade product were 16% behind on the same time last year.
The company generates about 80% of its revenue from manufacturing products and 20% from trade third party product.
Mincon noted that the significant drop in commodity prices in the past 18 months has resulted in pricing pressures in all of its markets.
It said that has led to management to take measures to adjust the group's cost base.
"Management expects the benefits of these efforts will begin to be reflected in the group's net margin in the second half of 2015 as it takes a number of months to work through the working capital cycle," today's statement said.
"The group's recent investment in its geographic footprint is expected to have an expected impact on own manufactured revenue and profitability in future quarters," the company added.
Mincon makes a range of rock-drilling hammers and bits for a variety of industries including mining exploration, mining production, oil and gas drilling, water well drilling, geothermal drilling and seismic drilling.
Earlier this month, the company announced Joe Purcell as its new chief executive Officer, replacing Kevin Barry who is retiring.
