Building materials group Kingspan has posted a 6% increase in turnover to €783.9m for the year ending December 2003. Pre-tax profits rose by 3% from €63.7m to €65.4m in a year when substantial parts of the construction markets in which it operates showed little or no growth.
The Co Cavan-based company said the impact of weakness in sterling and the US dollar against the euro knocked €4.9m of its operating profits, €60.5m off turnover and €2.2m off its earnings.
The company has proposed to pay a final dividend of 4.6 cent per share, an increase of 31% on the 2002 final dividend of 3.8 cent. This gives a total dividend for the year of 7.2 cent, up 22% on the previous year.
Kingspan said it spent €47.3m on acquisitions and capital investment during the year, up from €37.7m the previous year.
'The group is in a strong financial position to fund its anticipated growth, both organically and through bolt-on acquisitions', commented Eugene Murtagh, Chairman and CEO.
Kingspan said its performance is all of its major markets, with the exception of the US, showed significant growth. In constant currency terms, Ireland was up 14%, Britain and Northern Ireland up 13%, Western Europe up 11% and Eastern Europe up a massive 94%.
The company's insulated panel business showed growth of 28% during the year and Kingspan said in an effort to further capitalise on opportunities in the UK, Ireland and Benelux, an additional manufacturing facility will come on stream later this year.
Representing 20% of the total group turnover, Kingspan's insulation business posted growth of 37% in 2003 with the focus on conversion from lesser performing traditional insulants.
Turnover at Kingspan's environmental container division rose by 17%, driven by increasing environmental awareness and regulations in the Irish and UK markets.
The environment for the company's access floors division in the UK and US remained challenging last year, Kingspan admitted, with office starts at their lowest levels for many years. However, the company said there are signs of a recovery in the US economy and while it has already seen some improvement this year, it will be 2005 before there is a substantial improvement in the division.
Kingspan's structural and off-site operations saw turnover grow by 2% on a constant currency basis against a backdrop of a 5% sectoral decline.
Kingspan shares fell six cent to €4.28 in Dublin.
