Kingspan profit soars

22nd Aug 2011 07:32

Insulation board specialist Kingspan posted a 24% increase in half year trading profit and upped its dividend 12.5% following strong growth across most of its businesses."During the first six months of 2011, activity throughout the group was strong benefiting from the growth in order book recorded towards the end of last year which continued through the first quarter of 2011, the group said in a statement. Trading profit rose 24% to €44.2m for the half year ended 30 June 2011. Revenue advanced 32% to €736m, an increase of 16% excluding the acquisition of CRH Insulation Europe (CIE). Revenue was up 17%, excluding the acquisition of CIE. "In addition to the robust underlying growth across the businesses, the group also absorbed the CIE Insulation acquisition which completed during the first quarter of 2011."Kingspan said trends in general building activity in the UK and North America were solid in the period, although were less buoyant from quarter two.The construction market in Ireland, which has suffered a dramatic contraction, remains subdued, with sales volume down by 16%. Overall the group expects approximately €80m of cost inflation during the full year with key inputs of both steel and chemicals rising sharply. Whilst presenting a tough challenge, the recovery of these costs is on track, it said.Net debt stood at €216.5m compared to €135.1m during the same half in 2010 due principally to the impact of the acquisition of CIE. An interim dividend of 4.5 cent per share has been offered, up 12.5% from last time. ---CJ