Mincon dragged down by slowing growth
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AIM-listed Irish engineer Mincon (LON:MCON) saw shares shrink by 6.37% to 111.01p (as of 12:10 BST) despite revenues for the first nine months of 2018 rising by 22%. While the rate remains positive, it is noticeably slower than the 29% growth rate seen at this point last year.
However, gross margins have rebounded to their 2016 level of 41%. The board took a broadly positive view of the future, saying: “We have probably reached the dynamic equilibrium we have been seeking through the last eighteen months, where we can supply customers within a more normal four or five weeks lead time, and maintain a reasonable organic growth rate. While we have brought on new capacity, so have competitors and suppliers, so the market is stabilizing at the current higher level. To gain much more from here means taking market share, and that means bringing through the next generation of products, widening the product range, and delivering new fuel efficient engineering to the market.
“While we have not set price competition as our market position, we will address challenges as they arise, while continuing to carry out case studies that establish the value of our products to the end customer. The success of this approach can be seen in our improving margins, but we do not take these for granted.“
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