Kingspan shares surge after 32.5% profits hike

KINGSPAN’S share price surged ahead by almost 6% yesterday after the company disclosed first half pre-tax profits increased by 32.5% to €37.5 million, well ahead of expectations.

The shares rose from an opening price of €5.15 to close at €5.45, a 5.83% increase as stockbroking analysts reacted well to the company’s figures, which also disclosed the interim dividend would be increased by 31% to 3.4 cent per share.

Goodbody analyst Robert Eason who rates the shares a buy said the main reason for the variance was stronger than expected sales growth across all product categories. “The key feature of the results is the structural growth stories of composite panels, insulation and environmental containers coming to the fore, with sales increasing by 23%, 27% and 14% respectively. The performance of the raised access floors business was well ahead of forecasts, with sales up over 50% (in local currency terms) in the US, while the decline in its European operations was not as bad as had been predicted,” he said.