Shannon-based engineering company Mincon has reported higher revenues and operating profits for the six month to the end of June and said it had implemented some price increases.

Mincon's revenues rose by 27% to €85.1m while its operating profits increased by 18% to €8.8m and its gross profit was also 18% higher at €27.1m.

The company specialises in the design, manufacture, sale and servicing of rock drilling tools and associated products.

It distributes precision engineered hard rock drilling tools for a range of industries, including mining, exploration, waterwell, geothermal, construction, horizontal directional drilling, oil, gas and energy.

Mincon said the strong growth in revenue has been accompanied by some pressure on its margins, due to cost increases across many fronts, but especially in raw materials and energy, as well as freight, partly arising from the use of air freight to reduce its order backlog.

The company said that sea freight conditions remain challenging, with no improvement in sight.

It said it will continue its current policy of holding high levels of finished goods inventory so that it can give its customers the "excellent service" that they expect from Mincon.

"On a more positive note, there has been a recent reduction in the constraints around raw material availability, which has enabled us to start unwinding raw material inventories, due to better supply conditions," it added.

Mincon also said that it has implemented price increases, and these are starting to take effect.

But it added that but constant vigilance is required to keep up with the pace of the cost inflationary pressures that it is seeing.

"While global conditions remain challenging, we are tackling and overcoming the difficulties presented. We have introduced price increases throughout the period and as these take effect they will ease the pressure on margins in H2 2022," Mincon's chief executive Joseph Purcell said.

"Our engineering skillsets continue to deliver, and our ambition has been reinforced by the progress on this front. Our manufacturing strength has grown, enabling us to reduce backlogs as we manage our strong order books," the CEO said.

"Our strong market presence across the globe has ensured that our customers get the service that they should expect. I would like to acknowledge the efforts of all my colleagues in ensuring this strong performance for the first half of 2022 and continuing our growth for the rest of the year," he added.