The continued drive for energy efficiency helped Irish insulation specialist Kingspan deliver a strong performance last year, with decent levels of organic growth boosted by the purchase of CRH's European insulation business CIE.
The acquisition had a significant effect on the group's insulation boards division, where turnover jumped 85 per cent to €460.4m (£391m) and trading profits rose from €16.7m to €25.7m. Greater market penetration and more refurbishment work helped to offset a generally lacklustre new-build construction sector, and revenue growth was also supported by passing through higher chemical prices onto customers.
Insulation panels, which account for just under half of group sales, saw turnover up by 19 per cent at €758m, thanks to a solid performance in Germany and Turkey. Sales in the UK were up 10 per cent, which is impressive given the weakness of the non-residential sector. This weaknes in new-build office space affected the access floors side, where trading profits slipped from €18.6m to €12.8m. Profits in environmental services rose from €0.9m to €6.7m, but much of this reflected a one-off contract that expires this year. Analysts are currently reviewing their forecasts.
