Kingspan's revenues for 2012 up 5% as Ireland continues to 'languish'

Building materials group Kingspan has reported pre-tax profits of €89.95m for the year to the end of December, up from €77.76m the previous year.

Revenues for 2012 rose by 5% to €1.63 billion while basic earnings per share increased by 18% to 43.8 cent.

The company said that activity in the wider building and renovation markets of the UK - which now represent 38% of Kingspan's sales - remained generally subdued last year.

However, new residential building and retail/distribution projects were providing some respite.

The Co Cavan-based firm said that mainland Europe remained quite mixed with Germany and some Central European countries growing, while the Benelux countries receded.

Ireland, which represents 4% of Kingspan's total sales, continued to ''languish'', the company said.

It said that North America was ''stable'', generating 14% of group sales. The company said that America can be the source of ''significant structural penetration led growth over the long term'', while the Australasian market softened slightly.

The company has proposed a final dividend of 7.25 cent per share, which means that the total dividend per share for the year is up 11% to 12.25 cent.

Kingspan said that the deal to buy the insulated panels arm of ThyssenKrupp for €65m and Dubai-based Rigidal Industries boosted the company's global presence, though the benefit to earnings will not show until 2013.

The company has weathered the economic downturn by taking advantage of a shift towards more energy-efficient building standards, particularly in its largest market, the UK.

''We are pleased to report another positive year of progress for Kingspan, one in which we continued to increase our profitability, generate strong cas flows and widen our global footprint,'' commented the company's chief executive Gene Murtagh.

Looking ahead, the company said that the improving positivity in global financial markets can not be ignored, ''even if the on-the-ground sense in many of Kingspan's end markets remains undeniably testing''.

It noted that the benefits of energy efficiency continue to gain momentum globally. ''Kingspan's positioning at the heart of what is a structural dynamic is key to our future, which, allied to the strength of our balance sheet, ensures that the group remains well equipped for the long haul,'' it added.