Insulation and building materials group Kingspan has warned it had seen some recent evidence of a slowdown in the UK commercial and industrial construction market, sending its share price lower.
In a trading update today, the Co-Cavan based Kingspan said it was guiding 10% growth in its full year trading profit.
It said that outlook was on the basis of current exchange rates.
Kingspan said its sales for the first nine months to the end of September rose by up 19% to €2.69 billion.
Sales in the third quarter were up 17%, the company added.
"Assuming current exchange rates prevail and conscious that much of the seasonally variable fourth quarter remains, we expect to deliver full year trading profit growth of approximately 10% or about €375m," the company added.
Kingspan chief executive Gene Murtagh had said in August that the only sign of an impact from Britain's decision to leave the European Union at that point was a small deterioration in planned office projects in London.
"In general our end markets are relatively stable, notwithstanding some recent evidence of a slowdown in UK commercial and industrial activity," Kingspan said in today's trading update.
The UK economy looks set for a difficult 2018 as Brexit approaches with most economists polled by Reuters predicting slower growth next year.
Data on Friday showed UK construction fell 1.6% month-on-month in September, while confidence among firms in the sector dropped to the lowest level in nearly five years according to a survey earlier this month.
Kingspan said that sales in its insulated panels division rose by 16% in the first nine months of the year, and were up 13% in the third quarter. It noted that mainland Europe sales were solid in most markets, especially in France.
The company said it had experienced a "sense of near-term indecision" around order placement in the UK, but added that its future activity tracker remained modestly ahead of last year.
Sales in the company's insulation boards unit were up 10% in the nine month period and rose by 16% in the third quarter. It noted that volumes of its Kooltherm product continued to outpace its other insulation products and was especially positive in the UK, Ireland, Western Europe and the Nordics.
Kingspan said that its Light and Air sales both so far this year and in the third quarter are strongly ahead due to acquisition activity.
Meanwhile, environmental sales in the first nine months of the year rose by 12% and were up 11% in the third quarter on the back of solid UK and Europe sales. Kingspan also highlighted the ongoing growth in rainwater harvesting in Australia.
Sales in the company's access floors division were up 2% in the first nine months of the year, while on a quarterly basis they rose by 4%. Kingspan said that the UK office activity softened - as expected - while the US office market remained relatively flat.
Shares in the company were 6.5% lower by the close of business in Dublin today.
