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Kingspan revenue jumps 30 per cent

Kingspan has released a its preliminary results for 2011 which show revenue up by nearly a third to around £1.3bn (€1.55bn).

The Irish materials supplier reported trading profit as being up 33 per cent to around £80m (€95.7m – 2010), representing an increase of 24 per cent excluding acquisitions.

Trading margin increased to 6.2 per cent while net debt increased by almost £43m, which the company stated was reflected in acquisitions of around £90m.

Looking ahead, Kingpan chief executive Gene Murtagh said that construction markets globally will remain ‘uninspiring’ in the short term.

However he said there has been evidence of improving markets in non-residential sectors in the UK and US which should bode well for the general market in the medium term.

He added: “It would appear from the recent level of bidding activity and our pipeline that the first half of 2012 should deliver continued, albeit moderating, growth.

“On the one hand, a robust retail and food sector, gradual improvement in the commercial and industrial segments, and relatively stable Housing starts in the UK and North America, all augur well for the industry in general.

“However, this must be counter-balanced by the on-going threats posed by continuing global uncertainty, a persistent lack of credit and the curtailment of public sector capital programmes in most markets. In addition to this, quarter two will pose the challenge of passing through further raw material increases.”

Among its trading highlights were:

Strong volume growth in insulated panels across most regions with revenue up 19 per cent to around £643m (€758m)

Return to profit growth in the environmental division, with sales growth of 18 per cent to £170m (€202m) and particularly buoyant sales in mainland Europe

Solid performance in access floors, despite acute weakness in the office construction market worldwide. Divisional sales decreased by 6 per cent to£106m (€126m)

Full recovery of raw material cost increases of approximately £50m (€60m)

In the UK, the company results stated:

“Sales volume of Insulated Panels in the UK grew 10 per cent in 2011, a strong performance given the relative weakness of the non-residential market in the region.

“Behind this performance was a gradual improvement in penetration, a solid flow of retail and food sector projects, and continued growth in refurbishment activity across all segments.

“In addition to this our new photovoltaic insulated Powerpanel® was launched posting encouraging first year sales of approximately 5 megawatt.

“At year-end, the UK orderbook stood at a similar level to the same point a year earlier, and early indications would point towards a positive first quarter.”

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