Kingspan’s energy savers boost profits

BUILDING materials group Kingspan boosted sales and profits significantly last year, achieving a 40% rise in pre-tax profits to €135m.

Sales rose 30% to €1.2 billion, while earnings per share were up 41% at 66.4 cent.

Kingspan has also announced a 44% higher final dividend of 8.95 cent giving a total of 13.4 cent for the year.

Half the growth was driven by the €140m spending spree that saw the group acquire operations across its five divisions.

Key among those was timber frame manufacturer Century Homes.

Kingspan has been focusing on products that will be well-placed to benefit from the increasing emphasis on environmentally friendly buildings.

Managing director, Gene Murtagh, said the group still has a €550m war chest to spend on further takeover opportunities as they come along.

"At this point Ireland accounts for about 25% of group turnover and Kingspan has no great worries about a sharp downturn in the Irish construction sector," added Mr Murtagh.

"At this point the group is active across Britain, mainland Europe and the US and is currently examining significant developments in Australasia and the US particularly for its insulated panels," he said.

"Over 60% of Kingspan's product suite is in the insulation sector and the group is confident that the growing pressure on energy conservation makes the outlook for the group quite positive in the years ahead."

Sales of insulated panels were up 24% last year.

The sector accounts for 38% of total revenue, according to Mr Murtagh.

Insulation sales, in general, grew by 9% with turnover of raised access floors achieving a similar level of growth.

Sales of environmental containers jumped 54%, while the addition of Century Homes led to a 75% surge in revenue in the group's off-site and structural division.

Mr Murtagh said the group will continue to show strong growth in the current year as the outlook across all five divisions stay strong.

Despite the very good results, which were better than market expectations, shares in the company fell 6 cents to €11.87 during the day.

The markets expect more modest growth in the current year and significant developments across Central and Eastern Europe are on the cards.

The markets will also be watching, with interest, the change in insulation regulations in Britain.