StockMarketWire.com - Rock-drilling tool specialist Mincon Group booked a 14% rise in first-half profit, after a gain from the sale of Swedish heat treatment business Hardtekno offset margin pressure and impairment charges.

Net profit for the six months through June rose to €7.2m, up from €6.3m on-year.

Mincon made a profit on the disposal of Hardtekno of €7.3m. It also booked impairment charges of €3.0m against the value of some existing assets.

Revenue rose 8% to €59.9m.

'The first half of 2019 marked a period where the production capacity of the group caught up with the order book of last year, but where the market has softened during the period,' chief executive Joe Purcell said.

'This has led to a build-up in inventory, a capacity coming on-stream in excess of current sales levels and an overhead level that requires growth to support it against the backdrop of a softening market.'

'This has impacted on our gross margin, our operating margin and our momentum.'


At 9:29am: [LON:MCON] Mincon Group Plc share price was 0p at 101.5p



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