Kingspan sees revenues rise 30%

Kingspan’s product development pipeline is set to drive growth, said group chief executive Gene Murtagh

The Cavan-based building suppliers reported that its revenue had grown to €1.55bn despite the challenging economic climate.

Kingspan is at the cutting edge of the insulation business and later this year will release its next-generation insulation. This technology has a much higher thermal rating than traditional, carbon-based insulation, offering a better return for consumers, said Mr Murtagh.

Kingspan is also looking at integrating energy production and insulation. It plans to launch an integrated solar panel, insulation and waterproofing system for commercial premises, called the Powerpanel, in 2013.

The main driver for recent growth was a change in consumers attitude to using higher-quality materials in construction for long-term energy savings.

Mr Murtagh said that, due to building regulation and environmental awareness, the public was much more interested in conservation.

“The theme of conservation has caught hold of the public,” he said. “People don’t want to spend money on energy when they don’t have to and so they are insulating buildings to a much higher standard.”

The results statement said: “The growing global recognition of the tangible economic benefits of improved building energy performance underscored the group’s revenue and profit growth last year. Sales turnover grew by 30% to €1,547m, and trading profit grew 33% to €95.7m.”

Davy’s, the stockbrokers, was impressed with the data, and said 2011 marks the year Kingspan returned to growth.

“The results confirm that 2011 was the year in which Kingspan returned to achieving significant growth,” said Davy analyst Flor O’Donoghue. “Given that results have come in ahead of forecast, and that previous assumptions for 2012 were cautious, we expect to upgrade estimates.”

The move to energy-saving materials led to strong growth in Kingspan’s insulation business. The acquisition of CIE insulation firmed the group’s mainland European presence.

Growth in insulated panel sales was strong across the world, with revenue up 19% to €758m.

Kingspan said growth in Ireland grew 13%, but was recovering from “exceptionally low levels”. In Britain, sales of insulated panels grew strongly. The launch of products such as insulated solar panels helped achieve 10% year-on-year growth. Kingspan is expecting to benefit further from the British government’s Green Deal initiative, a retrofitting scheme that will encourage people to insulate their homes.

Mr Murtagh said that Kingspan would continue to expand into the larger markets of north America and mainland Europe.