Kingspan Records A Solid Performance

Kingspan Group, the leading international provider of low energy building solutions, has issued its Interim Management Statement in advance of its Annual General Meeting which is being held in Dublin.

The Group has recorded a solid performance in the first four months of 2013 against a backdrop of tough European construction markets. Group sales of €520m were 10% ahead of prior year, or 11% ahead at constant exchange rates. Trading in the period was characterised by a particularly slow start to the year, followed by some pick-up in activity levels during March and April.

In the UK, market conditions have been relatively weak, particularly in non-office commercial construction with some improvement in residential and office activity. Mainland Europe was quite mixed as was the case for much of last year. The Benelux market continues to be persistently weak, particularly residential build in the Netherlands, and Germany started sluggishly, but continues to progress as a market for Kingspan with the increased exposure following the Group’s acquisition of ThyssenKrupp Construction last year. Ireland is showing some signs of improvement in commercial construction, albeit from a negligible base. The US has had a good start to the year on the back of a strong order book and this is expected to continue for the foreseeable future. Australasia has slowed from levels seen last year, particularly in commercial construction, while the Middle East and GCC regions are relatively buoyant.


Insulated Panel sales revenues were up 31% (down 5% pre-acquisitions) in the first four months, boosted significantly by the ThyssenKrupp and Rigidal acquisitions made in the second half of last year. The divisional trading margin is lower year on year due to the dilutive impact of the ThyssenKrupp acquisition and its more pronounced seasonality. In overall terms, the order book at the end of April was 37% higher (up 1% pre-acquisition) than the same period last year. The acquired businesses are integrating well and on track with plan.

Insulation Board sales revenues were 5% lower in the first four months compared to the same period last year reflecting, in particular, general economic weakness in the Netherlands and unhelpful weather conditions across Mainland Europe and the UK.

Access Floor sales revenues were 9% ahead during the first four months reflecting some improvement in the US and UK office activity, reasonable data centre build, as well as international contract wins.

Environmental sales revenues were 22% behind for the first four months although sales are expected to stabilise towards mid-year and into the second half.

Net debt at the end of April was €165.2m in line with the position at the end of last year. There were higher levels of working capital than at year end due to seasonal factors.

(CD)