Insulation materials specialist Kingspan (KGP) delivered a resilient first-half performance, with sales receiving a significant boost from recent acquisitions ThyssenKrupp Construction and Rifidal Industries. As a result, sales of insulated panels grew by a third to €482m and trading profits in that division rose by a quarter to €33.5m.
However, the dilutive impact of the acquisitions and pricing pressure saw the underlying trading margin in insulated panels slip from 7.5 per cent to 6.9 per cent, while the order book before acquisitions moved ahead a more modest 3 per cent. Moreover, turnover from insulation boards slipped 3 per cent to €225m and trading profits fell by 13 per cent to €13.5m, mainly as a result of the extended winter that restricted construction work in mainland Europe. There was also a decline in residential refurbishment related work in the UK due to the slow rollout of the Green Deal insulation programme.
Profits also fell in Kingspan's access floors division on revenues up 1 per cent to €78.9m. Higher costs relating to international sales and stronger competition in North America and Australia meant trading margins came under pressure and divisional profits slipped 9 per cent to €8.1m.
Broker Davy is forecasting full-year pre-tax profits of €99.9m and EPS of 49.1¢ (from €90m and 43.8¢ in 2012).
| KINGSPAN (KGP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,140¢ | MARKET VALUE: | €1.93bn | |
| TOUCH: | 1,139-1,141¢ | 12-MONTH HIGH: | 1,141¢ | LOW: 683¢ |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 482¢* | NET DEBT: | 20% | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 757 | 44.5 | 22.1 | 5.00 |
| 2013 | 858 | 47.1 | 23.0 | 5.50 |
| % change | +13 | +6 | +4 | +10 |
Ex-div: 28 Aug Payment: 20 Sep *Includes intangible assets of €395m, or 233c a share. £1=€0.854 | ||||
