Kingspan reveals 55% profits hike

KINGSPAN, the Cavan-based building materials group, has said first-half profits surged 55% to €62.4 million.

The company said strong turnover growth and demand for products to make buildings more energy efficient were behind the profits rise.

Turnover at three of the company’s four divisions rose, with group turnover ahead by nearly a third compared to the same period a year ago at €580m.

Turnover at its insulated panels and board business were up 29% from a year ago to €212m driven by demand.

Kingspan chief executive said despite rising input costs the company was able to boost its operating profits here through increased prices. Operating profits were up from €30.8m to €43.7m.

The only division to record a fall in turnover was its access flooring arm based mainly in the US. Mr Murtagh said despite the fall in sales, profits at business had actually risen because of tight cost control. Operating profits were €4.4m, up €3.6m from a year ago on sales of 58m.

The off-site structural products arm saw sales nearly double to €98m thanks to acquisitions and strong organic growth. Operating profits here were €5.7m higher at €10.1m.

Sales of environmental containers were 47% higher at €103m with operating profits coming in at €8.8m.

Mr Murtagh said the company has also made an investment in Hungary as part of a plan to extend its reach further into Eastern Europe. It already has operations in the Czech Republic and Poland. Around 10% of sales are generated in the region.

Some €137m was spent mainly on acquisitions during the first half, including the takeover of timber frame house maker Century Homes.

Mr Murtagh said the outlook for the rest of the year was positive with Kingspan doing well from the strength of the Irish construction market and from improving economic conditions in Europe and the US.

The company will pay shareholders an interim dividend of 4.45 cent per share, up 31%.

Shares in Kingspan gained nearly 2% following yesterday’s results.