Kingspan grows and profit jumps
Published: 28 February, 2012
DUBLIN: Building supplies company Kingspan posted full-year operating profit up by more than a third, driven by expansion in new markets.
It forecast further growth but at a more moderate pace in the first half of 2012.
Kingspan, the largest producer of insulation in Britain, Ireland, Canada and Australasia reported operating profit of €90.9m (£77.14m) in the 12 months to end-December, up from €67.4m the previous year.
This was boosted by the acquisition of CRH's European insulation business at the end of 2010.
Revenue rose 30% to €1.55bn while debt came in at €170.1m, rising from 120.8 million a year ago after several acquisitions.
Kingspan, which has repositioned itself to take advantage of growing energy efficiency agendas, said it achieved sales growth and stable margins despite weak construction markets that are likely to remain "uninspiring" in the near term.
"Although the international economic outlook remains uncertain, the group continues to expand its global presence in markets," chief executive Gene Murtagh said in a statement yesterday.
"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 and is focused on non-residential markets," the company added.
Construction output in the UK, Kingspan's largest market, fell 0.5% in the fourth quarter, according to data from the UK's Office for National Statistics published on Friday.