Trading stabilising at Kingspan

1st Mar 2010 15:22

Energy conserving building solutions provider Kingspan saw fixed cost reductions limit the downturn in profits during a 'hostile' 2009.Profit before tax tumbled 17% to €68.1m in 2009 from €56.7m in 2008 on turnover that fell by a third to €1,125.5m from €1,672.7m.The company reduced fixed costs during the year by €50m, bringing the total to €66m per annum since the company instigated its cost reduction programme.Net debt at the end of the year was down to €164.3m from €299.6m the year before.'While the year ahead will present continued challenges, there is now tangible evidence of stability emerging with conditions becoming more predictable than in the recent past,' Gene Murtagh, chief executive of Kingspan opined. 'Globally, energy conservation initiatives continue to gather pace which will play to the group's strengths. Coupled with the strong actions taken to date, it leaves Kingspan in good stead as markets regain stability,' Murtagh added. The board has elected not to resume dividend payments but will keep the situation under review in 2010, with reference to the company's debt situation, cash flow and operating performance.