Kingspan reports strong sales growth in first half of 2017

Ikaba Koyi Sharecast | 18 Aug, 2017 18:24 - Updated: 18:24 | | |

citla energy

Kingspan Group


15:45 20/09/17

Kingspan, the global leader in high performance insulation and building envelope solutions, reported a strong performance at the half-yaer stage and guided towards broadly positive end-market activity for the remainder of 2017.

For the six-month period ending 30 June, and excluding exchange rate effects, Kingspan saw revenues jump 19% to €1.75bn from €1.47bn in the year-ago period.

Acquisitions contributed 10% to sales growth and 6% to trading profit growth over that time span, the latter of which increased to €177.8m from €167.3m.

EBITDA was ahead by 6% to €209.2m from €196.8m, despite "ongoing raw material increases".

By operating segments, the company said insulated panel sales grew 17% amid continued improvement in Western Europe, solid activity in the UK and tougher, although resilient, performances in North America and Eastern Europe.

Insulation board sales grew 8% with ongoing advancement of its Kooltherm product in all key markets.

Light and Air sales of €81.7m also performed well in the company's 'maiden' results period.

At its environmental unit, revenues spead ahead by 12% to €88.9m.

Net debt increased to €440.3m or 1.06 times operating profits from €348.1m.

Gene Murtagh, chief executive of Kingspan said the board expected end-market activity to be broadly positive going forward.

"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," he said.

According to Murtagh, the board was also anticipating a further recovery of input increases: "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."

Kingspan lifted its interim payout by 10% to 11 cents per share.

The company's shares were up 7.80% to €30.90 by 12:30 BST.

More news

15:36 Investors told of 600 Group's 'confidence'

Machine tools and laser systems designer, distributor and manufacturer 600 Group updated the market on its trading on Wednesday, as investors gathered for its annual general meeting.

15:28 FTSE 100 movers: Babcock gains on update but Diageo drops

London's FTSE 100 was down 0.2% to 7,260.51 in afternoon trade on Wednesday as the pound gained ground after encouraging retail sales data, with the FOMC statement due after after the close very much in focus.

15:43 US existing home sales unexpectedly drop in August

Sales of US existing homes unexpectedly fell in August, according to data from the National Association of Realtors.

15:08 Blur Group to raise £1.2m through conditional placing

Blur Group announced on Wednesday that it intended to raise £1.2m before expenses by way of a conditional placing of ordinary shares at a price of 4p per ordinary share, to raise gross proceeds of £1.2m.

14:50 Frontier IP's Alusid extends SilicaStone range

Intellectual property commercialisation specialist Frontier IP noted on Wednesday that its portfolio company Alusid has launched an extension to its ‘SilicaStone’ range of sustainable alternatives to traditional stone.

14:46 Bank risks policy mistake by hiking in November, Credit Suisse says

Credit Suisse changed its rate call for the Bank of England to a hike in November, adding that it would be a 'one-off' and was likely to be a "big" policy mistake.

15:32 Rationale for asset purchases now gone, ECB's Knot says

The stronger euro reflects the relative strength and stability of the single currency bloc's economy, a top European Central bank official said.

14:15 HTC suspends shares amid Google takeover speculation

Trading in shares of Taiwanese technology group HTC will be suspended on Thursday following reports that Google parent Alphabet is planning a takeover.

14:02 RBC Capital upgrades Nostrum to 'outperform' after recent weakness

RBC Capital Markets upgraded Nostrum Oil & Gas to 'outperform' from 'sector perform' saying recent weakness is an opportunity and its discount to peers it set to unwind as it delivers operational milestones.

14:01 HSBC upgrades Stagecoach, despite longer-term doubts around dividend

Ahead of Stagecoach's 28 September trading update, HSBC bumped up its recommendation for the shares from 'reduce' to 'hold', telling clients they thought it was right to exercise caution in the long-term, although in the short-term it was unlikely that further trading weakness would come through.