Building materials group Kingspan has reported a slight fall in pre-tax profits for the first half of this year to €28.3m, despite a 5.5% increase in turnover to €380.3m.
But the company says the impact of weakness in sterling and the US dollar knocked €1.7m off profits and €33m off turnover. Without this, profits would have risen by over 6%.
Earnings per share grew by nearly 2% to 15.8 cent and a 24% higher interim dividend of 2.6 cent has been declared.
Kingspan says that despite difficult conditions, the companies businesses showed 'healthy growth' in all its markets before currency effects, with sales in Ireland up 11%, while British sales grew by nearly 15%. US sales rose 14%, while mainland Europe showed growth of nearly 25%.
The company says sales of insulated panels outperformed the markets in all areas. In its raised access flooring business, Kingpan says steps have been taken to cope with an expected decline in construction of new offices in the UK, while the US business is now breaking even.
Net debt rose to €142.5m, representing gearing of 59%. This follows payment of a special dividend and the €8m acquisition of businesses in Spain and Poland.
Chairman and chief executive Gene Murtagh said the company would be separating his two roles with the appointment of a non-executive chairman in 2004. Gene Murtagh Jr has been appointed chief operating officer.
Shares in the company dropped 14 cent to €3.25 in Dublin.
