Engineering company Mincon has reported a 29% increase in its revenues for the nine months to the end of September as the mining sector continues to make a broad based recovery.
The Shannon-based rock drilling engineering company said that revenues for its own engineered product sales were up 32%, while third party product sales increased by 20%.
In a trading update, the company said it was seeing growth across all the business units and territories, apart from South America where the loss of a key customer delivered a setback at the end of last year.
Mincon said its African markets has been strong, as has Northern Europe and the US.
"The reorganisation of Mincon Australia Group at the start of the year, and their beta testing of the new range for 2018, has great potential on top of their existing growth," the company said.
"Overall we are satisfied with the continued progress on revenue in the third quarter," it added.
The group said it continues to have a strong balance sheet with €28.5m of net cash after capital expenditure of €4.7m, an acquisition spend of €5.6m and dividends of €4.2m in the first nine months of this year.
Mincon said it is producing and selling beyond its optimum levels and delivering those products in some cases uneconomically in order to maintain a high level of service to customers.
"That is acceptable in the short term as we come out of the sector downturn, and it is clear that we have the products to sell, and both the customer base and markets in which to sell and that these provide an excellent platform for the next phase of growth," it added.
But it said that what it needs to do now is plan what its new production levels should be to continue to build margins, quality and service delivery through this sector upturn.
Mincon shares closed 5.29% higher in Dublin trade today.
