Co Cavan based building materials group Kingspan has reported a 55% rise in half yearly pre-tax profits as efforts to make buildings more energy efficient boosted demand for its products.
Pre-tax profits for the six months to the end of June climbed to €62.4m from €40.4m the same time last year. This was better than market expectations.
Earnings per share jumped by 56% to 30.7 cent compared to a figure of 19.7 cent in H1 2004.
The company reported a 32% sales increase from €439.4m to €580.1m.
Kingspan, which said that acquisitions also enhanced good results in its existing businesses, forecast a satisfactory outcome for the full year given the robust Irish market and improving conditions in the US and Europe.
'Continued move towards energy efficient products, modern methods of construction and environmental solutions remain the main contributory factors in Kingspan's growth,' the group said.
'Against the background of a robust Irish market, an evolving UK construction market and improving central European and US markets, the Group anticipates a satisfactory outcome for the year as a whole,' commented Gene Murtagh, Kingspan's CEO.
Kingspan's insulated panels division represented 36% of group turnover for the six month period, with revenues up 29% to €212m. The Irish market performed 'very robustly' with an encouraging pipeline for the rest of the year. The UK market performed a little under the level of last year, while the Benelux remains weak.
Sales of insulation products represented 19% of group turnover with revenues up 16% to €109m. Kingspan said that as anticipated, the rapid volume growth achieved by this division in recent years, has tapered somewhat as the market finally adjusts itself to the last UK regulations. However, the company expects this growth curve to rise from late 2006 onwards, driven by proposed amendments to the building regulations. Investments to capitalise on this will be made during this year and next.
Sales of Environmental Containers represented 18% of group turnover with revenue up 47% to €103m. The pollution control range of effluent treatment products provided much of the organic growth of 20%. Kingspan said that it is seeing an increasing shift towards domestic treatment plants from traditional septic tanks, especially in Ireland.
Sales of Access Floors represented 10% of group turnover in the six month period, and revenues fell by 4% to €58m. The company said this was against a backdrop of relatively weak commercial high rise construction in both the European and North American markets.
Sales of Off-site and Structural represented 17% of group turnover with revenue up by 95% to €98m. Excluding the effect of acquisitions, revenue was up 41%. Kingspan said a feature of the six month period was the 'extraordinary' steel price increases which were passed on to the sector.
Kingspan shares closed up six cent at €10.96 in Dublin.
