KINGSPAN GROUP PLC

 

HALF-YEARLY FINANCIAL REPORT

 

for the period ended 30 June 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KINGSPAN GROUP PLC

RESULTS FOR THE HALF YEAR 30 JUNE 2017

Kingspan, the global leader in high performance insulation and building envelope solutions, issues its half-yearly financial report for the six month period ended 30 June 2017.

 

Financial Highlights:

·    Revenue up 19% to €1.75bn, (pre-currency, up 21%).

·    Trading profit* up 6% to €177.8m, (pre-currency up 10%). 

·    Acquisitions contributed 10% to sales growth and 6% to trading profit growth in the period.

·    Group trading margin** of 10.2%, a decrease of 120bps versus the same period in 2016.

·     Net debt of €440.3m (H1 2016: €348.1m). Net debt to EBITDA of 1.06x (H1 2016: 0.9x).

·     Basic EPS up 5% to 74.4 cent (H1 2016: 70.6 cent).

·     Interim dividend per share up 10% to 11.0 cent (H1 2016: 10.0 cent).

·     17.3% ROCE (H1 2016: 17.8%).

 

Operational Highlights:

·    Insulated Panel sales growth of 17% with a continuing improvement in Western Europe, solid activity in the UK and tougher, although resilient, performances in North America and Eastern Europe.

·    Insulation Board sales growth of 8% with ongoing advancement of Kooltherm® in all key markets.

·    Light & Air sales of €81.7m making a strong start in its maiden results period.

·    Environmental continues to progress positively overall. Access Floors is ahead in the UK, albeit with a softer pipeline towards year end, with subdued activity in North America.

·    The pass through of significant and ongoing raw material increases was a key trading theme in the period.

 

Summary Financials:

 

	H1 '17 €m	H1 '16 €m	% Change
Revenue	1,749.3	1,468.1	+19%
EBITDA	209.2	196.8	+6%
Trading Profit*	177.8	167.3	+6%
Trading Margin**	10.2%	11.4%	-120bps
EPS (cent per share)	74.4	70.6	+5%

 

* Operating profit before non-trading items and amortisation of intangibles

** Operating profit before non-trading items and amortisation of intangibles divided by total revenue

 

 

Gene Murtagh, Chief Executive of Kingspan commented:

"The first six months of 2017 were strong for Kingspan. We expect end market activity to be broadly positive for the remainder of the year and at current exchange rates to deliver a full-year result at least in line with consensus. Whilst margins contracted somewhat, we anticipate further recovery of input increases in the second half. Our balance sheet is strong and ready to support our development agenda as the opportunities unfold."

 

For further information contact:

Murray Consultants Douglas Keatinge

Tel: +353 (0) 1 4980 300

 

Business Review

 

In the first six months of 2017, Kingspan delivered strong revenue growth with sales up 19% over the prior year. The primary drivers of this growth were the ever increasing demand for greater energy efficiency, a robust recovery in much of Western Europe, and a significant inflationary dimension in the second quarter. Trading profit increased by 6%, which was somewhat constrained by a lag in selling price increases. Whilst chemical raw material costs will rise further in the second half, margins are expected to improve as the sales price increases notified earlier in the year come into effect.

 

Market activity in general has been positive, even in the UK despite the underlying political uncertainty. The US and Germany have also performed robustly, whilst the Netherlands and France in particular have demonstrated a strong recovery from the lows of a few years ago. The Nordics and Australia performed well for Kingspan, however, less positive were pockets of Central Europe and the Middle East, although penetration growth in the latter continued to drive sales growth.

 

So far this year we have invested €64m, €50m of which was on internal capital projects, and €14m on acquisitions, one of which marked our entry into South America, and another providing an enhanced presence in Australia. Since period end, we have acquired CPI Daylighting in the US for consideration of €40m, further bolstering our global Light & Air footprint. Our future acquisition pipeline remains healthy.

 

On the technology front, QuadCore® and Kooltherm® continued to increase penetration. QuadCore® represented 5% of Kingspan's Insulated Panels sales, up from initially zero in 2016, with Kooltherm accounting for 35% of Kingspan's rigid board sales, again well ahead of the same period last year.

 

Innovation

For decades now, innovation has been a cornerstone of Kingspan's strategy. The sole focus of this is to create consistent tangible differentiation from competing technologies and systems by providing superior performance at every step.

 

The vast portion of our new R&D initiatives fall into the categories of Thermal, Fire, Aesthetics and Structural.

 

v Thermal - our most recent developments have been QuadCore® Version 1, Kooltherm® Version 2, and Optim-R®. The first two outperform other rigid insulations by up to 20%, and materials like mineral wool by almost 60% when measured on a performance/thickness scale.

v Fire - over the last ten years, we have developed ground-breaking fire performing rigid insulations that have undergone more independent testing worldwide than any other insulation material. In all, more than 1,700 tests have been carried out on our products, and some are now achieving standards that were previously reserved for fibre containing materials often referred to as 'non-combustible'.

v Aesthetic - Kingspan's Insulated Panels and Façades now feature offerings that include Benchmark®, Matrix® and Dri-Design®. These form part of our ever-expanding array of finishes that both inspire and enable the creative freedom that today's designers require.

v Structural - the current focus of this aspect of our innovation effort is to develop multiple span flat roofing insulated panels that more fully address the conversion opportunity on membraned roofs, and open up a relatively new and under exploited market for Kingspan.

 

Insulated Panels

 

	H1 '17 €m	H1 '16 €m	% Change
Revenue	1,111.7	949.5	+17% (1)
Trading Profit	116.9	112.0	+4%
Trading Margin	10.5%	11.8%	-130bps

(1)   Comprising underlying +11%, currency impact -1% and acquisitions +7%

Mainland Europe & Middle East

Activity across much of Western Europe has been strong during the first half of 2017, with the Benelux, France and Nordics being particular standouts for Kingspan. Penetration rates of high performance Insulated Panels remain relatively low in some of these regions, which when combined with wider improvement in building activity led to a strong performance in the period. Germany was broadly flat at a revenue level, and order intake has also presented somewhat of a challenge as we push to recover margin in an increasingly competitive market. Central Europe was quite mixed in the period, whilst non-residential activity in Turkey and the Middle East remained understandably subdued.

 

UK

Having delivered an uncharacteristically strong first quarter, revenue in the UK eased off as expected during the second quarter in part owing to a relatively soft retail build programme by the traditional incumbents. Quotation activity remains encouraging however and intake in quarter three is expected to improve as sectors such as data, online retail and continental retailers continue to develop their physical infrastructure across the UK. Kingspan's solutions are often a key component in these developments, now further enhanced by our Quadcore® offering which represented 5% of Panel sales in the first half, up from virtually zero a year earlier.

 

Americas

Insulated Panel revenue and volume were both comfortably ahead of the same period last year, owing to the strength of backlog at the turn of the year. As with most of our markets worldwide, the recovery of raw material inflation was central, particularly in the second quarter. Our strategy has been to fully recover, even at the expense of market share loss. This transpired in quarter two, and was particularly pronounced in Canada, where much of the market has not responded to the cost increases. Our near-term approach is to hold our line as we anticipate further increases in the second half. Encouragingly, market penetration in the US continues to advance. We have recently begun manufacturing in Mexico, and also acquired 51% of PanelMet in Colombia. We expect these investments to be the beginning of our longer term Latin American strategy, as we embark on an entirely new frontier for Kingspan.

 

Australasia

This region has again demonstrated encouraging growth as penetration rises in Australia and New Zealand, and the early efforts of our market entry into South East Asia pay dividends. The energy efficiency of buildings in general across this region lags significantly behind the levels achieved across Europe. Our aim therefore is to be instrumental in the drive towards a more efficient build environment in this region, a goal that has delivered well for Kingspan over the last decade.

 

Ireland

Given its relative size, the market in Ireland can be sensitive to the presence of major projects. Over the last few years this market has grown consistently, and although the medium term pipeline is very positive, actual activity in the first half of 2017 is broadly flat with 2016. We expect the second half to display a similar pattern.

 

Insulation Boards

 

	H1'17 €m	H1 '16 €m	% Change
Revenue	373.7	347.4	+8% (1)
Trading Profit	40.0	39.9	-
Trading Margin	10.7%	11.5%	-80bps

(1)   Comprising underlying +11% and currency impact -3%

 

UK

Insulation Board sales revenue in the UK grew significantly in the first half of the year through a combination of modest overall volume growth, a notable increase in conversion to Kooltherm®, and pronounced selling price increases resulting from the steep chemical inflation we have been experiencing. The latter, when combined with the associated supply constraints imposed upon the market, has created an environment for Kingspan to accelerate conversion to our proprietary Kooltherm® technology which now represents 35% of our rigid board sales worldwide, and 34% in the UK alone.

 

Mainland Europe

Sales volume in Continental Europe has been strong so far this year, particularly in the Benelux, Germany and the Nordics. Whilst cost inflation recovery was somewhat slower than in other markets during the first half, quarter three will see notable traction on this front. Kooltherm conversion has also been encouraging in these markets, to the point that we intend developing a greenfield manufacturing facility in the Nordics during 2018.

 

Americas

Revenue in North America for our XPS products has been broadly flat with prior year as our facility in Winchester has been operating at maximum capacity. We are currently in the process of commissioning a new line there which, when fully operational, will provide approximately $40m in additional revenue potential. Concurrently, we are in the early stages of developing the specification channel for Kooltherm® and Optim-R®. Progress can be expected to be gradual in this regard as both technologies are new to the North American market.

 

Australasia & the Middle East

Activity in both of these markets has been tracking ahead of prior year. This has been driven in the main by the growth in conversion to Kooltherm® in Australia, now supported by our recent plant opening in Melbourne, and by the continued rise in high performance insulation across the Middle East, particularly in residential applications in the Gulf States. A new rigid board line was commissioned in the UAE earlier this year, where we would also aim to develop a Kooltherm® facility over the coming two to three years.

 

Ireland

The progress of our insulation business in Ireland has been very encouraging in recent times. The raw material supply shortage has resulted in us activating an accelerated conversion strategy towards Kooltherm®. This approach has been effective in both meeting our customers' insulation needs during this time of shortage, as well as simultaneously enhancing the margin profile of our business in this market.

 

Light & Air  

 

	H1'17 €m	H1 '16 €m
Revenue	81.7	n/a
Trading Profit	3.0	n/a
Trading Margin	3.7%	n/a

 

This new division, formed in the second half of 2016, aims to develop a global leadership position in the market for efficient daylighting, smoke management and ventilation systems that not only complements Kingspan's existing envelope activities, but also serves the wider building envelope market worldwide. As set out in the 2016 Annual Report, we have reported this business as a separate segment from 1 January 2017 onwards.

 

Starting with our original product set, we commenced a programme of expansion, through acquisition initially, to assemble a global footprint. Presently, we are manufacturing in Ireland, the UK, France, Germany and North America and expect to generate annual revenue of close to €200m, and an operating margin of approximately 7%, on plan, in what is typically a more second half weighted business. Over a five year period from now, we plan to develop the Light & Air division into a business with annual turnover exceeding €500m.

 

Environmental

 

	H1'17 €m	H1 '16 €m	% Change
Revenue	88.9	79.5	+12% (1)
Trading Profit	6.7	4.2	+59%
Trading Margin	7.5%	5.3%	+220bps

(1)   Comprising underlying +3%, currency impact -6% and acquisitions +15%

This division experienced a solid performance in the first half of the year with like-for-like revenues up 3%.

 

Rainwater harvesting in Australia has been a key driver of this year's growth, which now with the addition of the Rhino® brand acquired recently, moves further into larger scale non-residential water management. Effluent treatment products have also performed well, as did our Ecosafe® fuel storage range.

 

Hot water and solarthermal products have however continued to experience tougher trading conditions in the UK, and continuous cost improvement will remain our primary focus in this business segment medium term.

 

Access Floors

 

	H1'17 €m	H1 '16 €m	% Change
Revenue	93.3	91.7	+2% (1)
Trading Profit	11.2	11.2	-
Trading Margin	12.0%	12.2%	-20bps

(1)   Comprising underlying +4% and currency impact -2%

The trading pattern in this segment broadly mirrored that of recent years where the UK has continued to deliver a strong year-on-year result, in contrast to the class A office sector in the US which has remained relatively subdued. We can expect this pattern to prevail for the remainder of 2017, after which it is likely that office building activity in the UK will ease off.

 

The wider 'data' solutions dimension to this division has however continued to deliver well for Kingspan as we increase our exposure to many of the leading technology enterprises worldwide by providing multiple solutions to datacentre type applications. Also of note is the relatively embryonic but growing floor finishes product group. Together these two platforms will drive longer term evolution of this division worldwide.

 

Financial Review

 

Overview of results

Group revenue increased by 19% to €1,749.3m  (H1 2016: €1,468.1m) and trading profit increased by 6% to €177.8m (H1 2016: €167.3m). This represents a 21% increase in sales and a 10% increase in trading profit on a constant currency basis. The Group's trading margin decreased by 120bps to 10.2% (H1 2016: 11.4%) reflecting the impact of higher input prices and the associated lag in recovery. The amortisation charge in respect of intangibles was €7.5m compared to €5.3m in the first half of 2016 with the increase reflecting, primarily, the year on year effect of intangible assets acquired as part of business acquisition activity during 2016. Group operating profit after amortisation and non-trading items grew 5% to €170.9m. Profit after tax was €133.1m compared to €125.7m in the first half of 2016 driven, in the main, by the growth in trading profit. Basic EPS for the period was 74.4 cent, representing an increase of 5% on the first half of 2016 (H1 2016: 70.6 cent).

 

The Group's underlying sales and trading profit performance by division is set out below:

 

Sales	Underlying	Currency	Acquisition	Total
Insulated Panels	+11%	-1%	+7%	+17%
Insulation Boards	+11%	-3%	-	+8%
Access Floors	+4%	-2%	-	+2%
Environmental	+3%	-6%	+15%	+12%
Group *	+11%	-2%	+10%	+19%

 

* Includes Light & Air

 

The Group's trading profit measure is earnings before non-trading items, interest, tax and amortisation of intangibles:

 

Trading Profit	Underlying	Currency	Acquisition	Total
Insulated Panels	+2%	-4%	+6%	+4%
Insulation Boards	+3%	-3%	-	-
Access Floors	+4%	-4%	-	-
Environmental	+40%	-6%	+25%	+59%
Group *	+4%	-4%	+6%	+6%

 

* Includes Light & Air

           

Finance costs (net)

Finance costs for the period were modestly higher than the same period last year at €7.6m (H1 2016: €7.2m). Finance costs include a non-cash charge of €0.1m (H1 2016: €0.1m) relating to the Group's legacy defined benefit pension schemes. A net non-cash credit of €0.5m was recorded in respect of swaps on the Group's USD private placement notes (H1 2016: charge of €0.2m). The Group's net interest expense on borrowings (bank and loan notes) was €7.9m compared to €6.9m in the first half of 2016. The increased interest charge reflects the interest on the new private placement completed in November 2016.

 

Taxation

The tax charge for the first half of the year was €30.2m (H1 2016: €29.1m) which represents an effective tax rate of 18.5% on profit before tax (H1 2016: 18.8%). The decrease in the effective rate reflects the global mix of earnings year on year.

 

Retirement benefits

The primary method of pension provision for current employees is by way of defined contribution arrangements. The Group has two legacy defined benefit schemes in the UK which are closed to new members and to future accrual. In addition, the Group assumed a number of smaller defined benefit pension liabilities in mainland Europe through acquisitions completed in recent years. The net pension liability in respect of these schemes and obligations was €15.0m at 30 June 2017 (30 June 2016: €7.1m).

 

Free cashflow 

 

Free cashflow	H1 '17	H1 '16
	€m	€m
EBITDA*	209.2	196.8
Movement in working capital **	(84.9)	(26.0)
Net capital expenditure	(46.0)	(52.5)
Pension contributions	(0.6)	(1.1)
Net finance costs paid	(9.8)	(7.5)
Income taxes paid	(32.0)	(20.3)
Other including non-cash items	3.5	3.2
Free cashflow	39.4	92.6

 

*Earnings before finance costs, income taxes, depreciation, amortisation and non-trading items

**Excludes working capital on acquisition but includes working capital movements since that point

 

Working capital at 30 June 2017 was €445.4m (31 December 2016: €382.7m), an increase of €62.7m in the period. This increase is driven by the working capital on acquisitions in the period, a seasonal build in the first half of the year and increased steel and chemical prices.

 

The average working capital to sales % was 13.1% in H1 2017 compared to 10.5% in H1 2016.

 

Net Debt

Net debt increased by €12.4m during the first half of the year to €440.3m (31 December 2016: €427.9m) and this is analysed in the table below:

 

Movement in net debt	H1 '17	H1 '16
	€m	€m
Free cashflow	39.4	92.6
Acquisitions and disposals	(8.6)	(80.6)
Share issues	0.1	1.0
Dividends paid	(42.0)	(30.2)
Cashflow movement	(11.1)	(17.2)
Exchange movements on translation	(1.3)	(2.9)
Increase in net debt	(12.4)	(20.1)
Net debt at start of period	(427.9)	(328.0)
Net debt at end of period	(440.3)	(348.1)

 

Capital Structure and Group Financing

The Group funds itself through a combination of equity and debt. Debt is funded through a combination of syndicated bank facilities and private placement loan notes.

 

In June 2017, the Group refinanced its primary syndicated bank debt facility. The new facility, negotiated on more favourable terms than the previous facility, is a €500m revolving credit facility, with a syndicate of ten international banks, with a committed term to June 2022. This facility was undrawn at 30 June 2017. This facility replaced a previous €300m syndicated facility, which was due to mature in March 2019, and bilateral agreements totalling €160m which were due to mature in January 2018.

 

In addition, as part of the Group's longer term capital structure, the Group has total private placement loan notes of €666m which have a weighted average maturity of 6.5 years.  

 

The weighted average maturity of all debt facilities is 5.9 years.

 

As well as ongoing free cashflow generation, the Group has significant available undrawn facilities and cash which provide appropriate headroom for operational requirements and development funding. Total available headroom was approximately €706m at 30 June 2017.

 

Related Party Transactions

There were no changes in related party transactions from the 2016 Annual Report that could have a material impact on the financial position or performance of the Group in the first half of the year.

 

Principal Risks & Uncertainties

Details of the principal risks and uncertainties facing the Group can be found in the 2016 Annual Report. These risks, namely volatility in the macro environment, failure to innovate, product failure, business interruption (including IT continuity), credit risks & credit control, employee development & retention, fraud & cybercrime and acquisition & integration of new businesses, remain the most likely to affect the Group in the second half of the current year. The Group actively manages these and all other risks through its control and risk management processes.

 

Dividend

The Board has proposed an interim dividend of 11.0 cent per ordinary share, an increase of 10% on the 2016 interim dividend of 10.0 cent per share. The interim dividend will be paid on 6 October 2017 to shareholders on the register on the record date of 1 September 2017.

 

Looking Ahead

We expect end market activity to be broadly positive during the remainder of 2017, with a solid performance anticipated in the UK and Ireland, continued strength across much of Western Europe and the Nordics, and a reasonably stable environment in North America.

 

Conversion towards our high performance insulations and building envelopes has been on an upward trajectory for some time now. The recent pattern has been, and is expected to remain, consistent with this as the thermal, aesthetic, and fire performance of our solutions play a more significant role in specifications as we move forward.

 

Nearer term we anticipate an unrelenting chemical supply environment that will maintain high cost and pricing levels, which may be accompanied by a constrained flow of material. In light of these circumstances Kingspan will continue to successfully deploy its wide-ranging product set to limit the impact of this issue, and at current exchange rates we expect to at least meet the consensus view of 2017 as a whole.

 

 

 

 

RESPONSIBILITY STATEMENT

 

Directors' Responsibility Statement in respect of the half-yearly financial report for the six month period ended 30 June 2017

 

Each of the directors of Kingspan Group plc confirm our responsibility for preparing the half year financial report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the Transparency Rules of the Central Bank of Ireland and with IAS 34 Interim Financial Reporting, as adopted by the EU, and to the best of our knowledge and belief:

a) the condensed interim financial statements comprising the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Financial Position, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Statement of Cash Flows and related notes have been prepared in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the Transparency Rules of the Central Bank of Ireland and with IAS 34 Interim Financial Reporting as adopted by the EU. 

 

b) The interim management report includes a fair review of the information required by:

 

i) Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

ii) Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

The directors of Kingspan Group plc, and their functions, are as listed in the 2016 Annual Report.

 

 

On behalf of the Board

 

Gene Murtagh		Geoff Doherty
Chief Executive Officer		Chief Financial Officer
18 August 2017		18 August 2017

 

 

 

 

 

Independent Review Report to Kingspan Group PLC

 

Introduction

 

We have been engaged by the company to review the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2017 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Financial Position, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Statement of Cash Flows and the related explanatory notes. The financial reporting framework that has been applied in their preparation is International Financial Reporting Standards as adopted by the EU ("IFRSs"). Our review was conducted having regard to the Financial Reporting Council's ("FRC's") International Standard on Review Engagements ("ISRE") (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'.

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU, the TD Regulations and the Transparency Rules of the Central Bank of Ireland.

 

Basis of our report, responsibilities and restriction on use

 

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the TD Regulations and the Transparency Rules of the Central Bank of Ireland. As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The directors are responsible for ensuring that the condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. Our responsibility is to express to the company a conclusion on the condensed set of consolidated financial statements in the half-yearly financial report based on our review.

 

We conducted our review having regard to the Financial Reporting Council's International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

We read the other information contained in the half-yearly financial report to identify material inconsistencies with the information in the condensed set of consolidated financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the review. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

 

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Transparency (Directive 2004/109/EC) Regulations 2007 as amended ("the TD Regulations") and the Transparency Rules of the Central Bank of Ireland. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

 

 

 

 

KPMG                                                                                                       18 August 2017

Chartered Accountants 

1 Stokes Place

St. Stephen's Green

Dublin 2

Ireland

 

 

 

 

 

 

Kingspan Group plc

 

Condensed consolidated income statement (unaudited)

for the 6 month period ended 30 June 2017

 

		6 months		6 months
		ended		ended
		30 June 2017		30 June 2016
	Note	€m		€m
Revenue	4	1,749.3		1,468.1
Cost of Sales		(1,243.5)		(1,010.7)
Gross Profit		505.8		457.4
Operating Costs *		(328.0)		(290.1)
Trading Profit	4	177.8		167.3
Intangible amortisation		(7.5)		(5.3)
Non-trading items	6	0.6		-
Operating Profit		170.9		162.0
Finance expense	7	(7.8)		(7.4)
Finance income	7	0.2		0.2
Profit for the period before income tax		163.3		154.8
Income tax expense	8	(30.2)		(29.1)
Net Profit for the period		133.1		125.7
Attributable to owners of Kingspan Group plc		132.8		125.4
Attributable to non-controlling interests		0.3		0.3
		133.1		125.7
Earnings per share for the period
Basic	12	74.4c		70.6c
Diluted	12	73.6c		69.7c

 

 

* Operating costs exclude intangible amortisation and non-trading items

 

 

 

Kingspan Group plc

 

Condensed consolidated statement of comprehensive income (unaudited)

for the 6 month period ended 30 June 2017

 

		6 months		6 months
		ended		ended
		30 June 2017		30 June 2016
		€m		€m
Net profit for financial period		133.1		125.7
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations		(54.5)		(57.6)
Net changes in fair value of cash flow hedges		(0.4)		1.1
Income taxes relating to changes in fair value of cash flow hedges		-		(0.1)
Total comprehensive income for the period		78.2		69.1
Attributable to owners of Kingspan Group plc		78.8		69.1
Attributable to non-controlling interests		(0.6)		-
		78.2		69.1

 

 

Kingspan Group plc

Condensed consolidated statement of financial position

as at 30 June 2017

		At 30 June		At 30 June		At 31 December
		2017 (unaudited)		2016 (unaudited)		2016 (audited)
	Note	€m		€m		€m
Assets
Non-current assets
Goodwill	13	971.1		859.7		990.1
Other intangible assets		91.5		85.7		91.9
Property, plant and equipment	14	674.0		625.0		665.5
Derivative financial instruments	10	31.2		43.2		40.6
Retirement benefit assets		6.4		7.8		6.7
Deferred tax assets		12.0		10.9		12.0
		1,786.2		1,632.3		1,806.8
Current assets
Inventories		444.1		322.6		365.5
Trade and other receivables		687.4		592.3		601.9
Derivative financial instruments	10	0.7		2.7		8.4
Cash and cash equivalents	10	205.6		166.5		222.0
		1,337.8		1,084.1		1,197.8
Total assets		3,124.0		2,716.4		3,004.6
Liabilities
Current liabilities
Trade and other payables		686.7		593.5		585.2
Provisions for liabilities		40.7		40.3		55.5
Derivative financial instruments	10	0.1		0.4		-
Deferred contingent consideration		6.2		6.6		6.8
Interest bearing loans and borrowings	10	1.7		123.5		41.1
Current income tax liabilities		79.0		73.8		77.1
		814.4		838.1		765.7
Non-current liabilities
Retirement benefit obligations		21.4		14.9		20.8
Provisions for liabilities		54.4		42.9		45.4
Interest bearing loans and borrowings	10	675.4		434.3		657.3
Deferred tax liabilities		37.5		45.7		37.8
Deferred contingent consideration		13.3		2.4		6.1
		802.0		540.2		767.4
Total liabilities		1,616.4		1,378.3		1,533.1
Net Assets		1,507.6		1,338.1		1,471.5
Equity
Share capital		23.5		23.4		23.4
Share premium		95.6		93.4		95.6
Capital redemption reserve		0.7		0.7		0.7
Treasury shares		(13.9)		(12.5)		(12.5)
Other reserves		(121.9)		(73.6)		(58.9)
Retained earnings		1,505.9		1,294.2		1,406.6
Equity attributable to owners of Kingspan Group plc		1,489.9		1,325.6		1,454.9
Non-controlling interests		17.7		12.5		16.6
Total Equity		1,507.6		1,338.1		1,471.5