Insulation manufacturer reports strong first half as building occupiers look to slash energy costs
Kingspan has reported a 24% increase in profit after a strong first half to the year
The manufacturer said it had benefited from a strong growth in orders in the second half of 2010.
Turnover increased 32% to €736 (£643) for the six months ending June 30 2011 having been boosted by the acquisition of CRH. Underlying growth in turnover was 17%.
Trading profit was up 24% to €44.2m (£38.59m), an increase of 17% excluding the acquisition of CIE.
The manufacturer reported a 22% increase in sales of insulated panels and 14% increase in sales of insulation boards excluding the acquisition of CIE.
A strong performance in Europe helped push sales in the environmental and renewables division by 17%.
Gene Murtagh, chief executive officer, commented: “Kingspan continues to outperform both the market and the general macro environment with our range of high-performance solutions although we remain very mindful in the period ahead of renewed global uncertainties and their possible impacts.”
Sales of insulated panels by value in the UK grew by 27% thanks to growth in the retail and refurbishment sectors.
The group said that it expected orders to soften in the UK in the second half and said that inflation was putting pressure on margins. It said sharp rises in steel and chemicals would contribute to €80m (£70m) of cost inflation during the full year.
Interim dividend per share was up 12.5% to 4.5%.