Kingspan reports improved momentum in 2013

Monday 24 February 2014 17.27
Kingspan's after-tax profits up 19% last year
Kingspan's after-tax profits up 19% last year

Insulation and building solutions group Kingspan has reported a 19% rise in after-tax profits for 2013 while revenues for the year increased by 10%.

The full year results were in line with analyst expectations and were driven largely by a strong performance in the second half. 

Co Cavan-based Kingspan said its after-tax profits for the year to the end of December rose to €89.2m from €74.7m while revenues increased to €1.790 billion from €1.628 billion.  

The company has proposed a total dividend for the year of 14 cent, up 14% on 2012.

Shares in Kingspan jumped 3.2% higher in Dublin.

"Kingspan saw an improved momentum during 2013, despite various demanding market conditions, which has helped to deliver a strong operational performance including increased profitability, a higher return on capital and an improved dividend," commented the company's chief executive Gene Murtagh.

He said the trading year was characterised by an unusually slow start in construction activity in Northern Europe with momentum building thereafter.

Sales revenue at Kingspan's insulated panels division rose by 23% to €1.036 billion, while trading profits at the division grew by 23% to €75.6m.

Irish sales revenues at the division increased by 24% which Kingspan said reflected the continued - albeit gradual - recovery of the market. 

Kingspan said that trading profits at its Insulation Boards division were flat at €29.5m while sales revenue for the year fell by 3% to €455.4m. It said that Ireland has shown "clear signs of improvement" during the year and Irish sales grew by 2%, adding that the market appears to be on a path towards a "more measured and sustainable level of activity". 

Trading profit at the company's Environmental division grew by 25% to €1.5m while revenues for the year fell by 12% to €144.7m after a year of restructuring at the unit. 

At its Access Floors division, sales revenues were unchanged at €154.2m while trading profit rose by 6% to €16.2m. The company noted that activity in North America is driven by the data centre market which continued to grow robustly. 

"With some tentative signs of improved economic stability and sentiment, Kingspan remains focused on its core strategy of delivering innovation, prudent management and a widening global footprint that leaves the company well positioned to take advantage of any recovery that may take place in individual markets," the company's chief executive said.