Mincon (MCON)

Mincon MCON Logo

The Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products.

23-Oct-2017 – 97p – £197.2m

Trading Update For The 9 Months To End September 2017 – LFL – Revenue up 29% (26% in CC) but PBT margins are 13.2% compared to 15.7% last time.

Always quite liked this company and always keep thinking it’s fairly priced, up about 50% and 20% since I last had those thoughts. On a PER of 18.5 here though, I am going to maintain that view once again – Perhaps wrongly, again!

20-Mar-2018 – 104p – £230.1m – PER 19.7

Results For The 12 Months To End December 2017 – Revenue up 28% from 76m Euro to 97m Euro with Operating Profit up 38% from 10m Euro to 14m Euro (Net Profit up 13% to 10.4m Euro). Another cash purchase this morning.

I keep avoiding buying in here for some reason or other (I think it’s the acquisitions, and there’s another one today!). Anyway, to maintain a more active eye I will add it to my Watchlist, 100p.

13-Aug-2018 – 142.5p – £308.9m – PER 24.0

Results For The 6 Months To End June 2018 – Nice, Revenue up 19%, PBT up 30% and EPS up 19%.

I’ve always avoided paying up here and I live to regret it. Was on my Watchlist (at 100p) but now I will go Neutral as it looks (to me) fairly priced around this level (I say this based on the valuation and with the uncertainties of Brexit in mind).

26-Oct-2018 – 117p – £242m – PER 30.1

Trading Update For The 9 Months To End September 2018 – Optimistic 2019 performance will be in-line.

This seems like a cautious warning that 2019 will not be in-line. This was on my Watchlist at one time before I moved to Neutral a couple of months ago. I remain Neutral (at best) and would not be looking to invest here until seeing a much more bullish update than this.

25-Apr-2019 – 101p – £223m – PER 13.5

Interim Trading Statement – Looks a bit mixed with what seems like Revenue up and profitability down.

I remain cautious here, it’s not positive enough for me to get involved.

12-Aug-2019 – 101p – £229m – PER 13.6

Interim Results For The 6 Months To End June 2019 – Revenue up 8%, Profit up 14%, EPS up 16%. Potential small warning on FY, tariffs, exchange rates, low wage producers and margins softening all mentioned.

I remain uninterested here.

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