Insulation specialist Kingspan (KGP) grew trading profit 13 per cent to €107.7m (£92.8m) in 2012 and boosted its trading margin from 6.2 per cent to 6.6 per cent. But management also warned that a sluggish start to the new year in the UK and western Europe could lead to a comparatively tough first half. So, despite pockets of growth - notably in Germany - prospects for share price upside look hard to spot.
The insulated panels business, which generates around half of group turnover, saw trading profit grow 22 per cent to €61.7m, thanks to the positive effects of two acquisitions - ThyssenKrupp Construction for €54.3m and United Arab Emirates-based Rigidal Industries for an initial €22m. Organic growth was less impressive, however, with sales down 10 per cent in the US and by 2 per cent in the UK.
Insulation board trading profit did jump 15 per cent to €29.5m, but nearly half of this resulted from favourable foreign exchange movements and sales here edged ahead just 2 per cent to €470.4m. Sales in access floors were more robust however, rising 22 per cent to €154.1m, while trading profits there rose 20 per cent to €15.3m - helped by a rebound in office sector construction, notably in London.
Broker Davy currently expects 2013 pre-tax profit of €98.1m and EPS of 47.5¢ (from 42.9¢ in 2012).
| KINGSPAN (KGP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 897¢ | MARKET VALUE: | €1.51bn | |
| TOUCH: | 896-898¢ | 12-MONTH HIGH: | 910¢ | LOW: 619¢ |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 478¢* | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 1.67 | 68.1 | 26.7 | 8.0 |
| 2009 | 1.13 | 56.7 | 28.7 | nil |
| 2010 | 1.19 | 55.7 | 29.2 | 10.0 |
| 2011 | 1.55 | 77.8 | 37.1 | 11.0 |
| 2012 | 1.63 | 90.0 | 43.8 | 12.3 |
| % change | +5 | +16 | +18 | +11 |
Ex-div: 24 Apr Payment: 16 May *Includes intangible assets of €406m, or 241¢ a share £1=€1.16 | ||||
