Strong euro hits Kingspan but profits up

THE strength of the euro hit profits at building supplies manufacturer Kingspan to the tune of €2 million in 2003 but the company still managed to increase pre-tax profits by 3% to €65.4m.

Merrion Securities were very upbeat about the results and analyst John Mattimoe said the results and outlook comments from management reinforce the potential for cyclical recovery combined with the structural growth dimension to deliver average annual growth of 20% to earnings per share over the next three years, with a return to meaningful growth likely this year.

"Notwithstanding a strong recovery in the share price over the last year, the shares are still only trading on a prospective P/E (price earnings) of 10.6x (times) forecast 2004 earnings, a rating that we believe does not fully recognise the visible prospects of a return to such a strong rate of earnings growth. We maintain our strong buy recommendation," he said.