Mincom reports record-breaking profit

After 27 years of hard work, local software provider Mincom has reported a $6.5 million profit in the half-year period ending December 2005.

The figure - its highest financial result in the history of the company - has been attributed to growing oversees contracts.

The company signed contracts with SeverStal Resource (Russia), Centerra Gold (Mongolia), Eyesizwe Coal (South Africa), Ivanhoe Mines (Singapore), Arch Coal (USA), Agnico Eagle (USA), Magnum Coal (USA), Tanzania Defence Force and the Reserve Bank of Zimbabwe.

These deals helped the company to push its sales revenue up 18 percent to $92.5 million. The prior corresponding period was $78.4 million.

The improvement in performance included a three percent increase in research and development (R&D) spending to $8.9 million as Mincom continued investing in its products.

“By deploying our resources more efficiently and seizing opportunities for growth, we achieved our most profitable first-half performance in Mincom’s 27-year history,” Mincom chief executive officer, Richard Mathews, said.

The company continued to manage working capital effectively resulting in a 47 percent increase to $38.2 million of its liquid working capital. Through improved cash flows, the company has also reduced its interest bearing debt of $3.4 million in the past year.