Ireland's Kingspan Group (KGP) revealed pleasing full-year numbers on the back of rising sales in the UK and North America. A marked improvement in margins enabled the building materials group to increase trading profits by a fifth to €149m (£109m), paving the way for a 16 per cent hike in the full-year dividend.
Activity in Kingspan's domestic Irish market remains subdued, but the group's performance was bolstered by strengthening non-residential construction in North America and the UK. The group's insulation panels are finding an increasingly ready market in the US, as energy efficiency and conservation are now firm fixtures on the national agenda. Continental Europe remains challenging, although there were encouraging signs from Holland and Germany.
The group spent in excess of €114m on acquisitions last year, and is now finalising arrangements to acquire Canada's Vicwest Building Products and the Joris Ide Group in Belgium for C$155m (£80.2m) and €315m respectively. Kingspan's management expects net debt to increase to about double annual earnings when these deals are completed. They are unwilling to take on debt beyond that level, although they remain keen to make an eventual foray into Brazil. The country's huge food production sector offers lucrative opportunities for Kingspan's specialist insulation products.
Goodbody Stockbrokers anticipates adjusted earnings of 73.3¢ a share for 2015 (from 66¢ last year).
| KINGSPAN (KGP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,671¢ | MARKET VALUE: | €2.9m | |
| TOUCH: | 1,668-1,671¢ | 12-MONTH HIGH: | 1,696¢ | LOW: 1,103¢ |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 583¢* | NET DEBT: | 12% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 1.2 | 56.0 | 29.2 | 10.00 |
| 2011 | 1.6 | 78.0 | 37.1 | 11.00 |
| 2012 | 1.6 | 90.0 | 43.8 | 12.25 |
| 2013 | 1.8 | 101.9 | 51.7 | 14.00 |
| 2014 | 1.9 | 127.5 | 62.6 | 16.25 |
| % change | +6 | +25 | +21 | +16 |
Ex-div: 23 Apr Payment: 15 May £1 = €1.36. *Includes intangible assets of €507m, or 295¢ a share | ||||
