After a sluggish start, trading in the first six months of 2018 accelerated at insulation specialist Kingspan (KGP), so that trading profits rose 10 per cent to €195.3m (£175m), boosted predominately by acquisitions.
Insulation panels (which are used as part of a wall during construction) accounted for almost two-thirds of revenue, and while profits were up 5 per cent, margins fell from 10.5 per cent to 9.7 per cent because of the dilutive effect of acquisitions. And after last year’s Brexit-induced slowdown, renewed demand for space in urban logistics came from the need for more warehouses to cater for the switch to online retail sales.
Revenue from insulation boards (used for infilling the existing structural frame) was underpinned by strong demand from its Kooltherm premium product, while margins rose from 10.7 per cent to 12.4 per cent as last year’s price increases in the face of rising raw material costs started to show through. Trading elsewhere saw weakness in the Benelux markets offset by strong trading in the Netherlands and the Nordic region.
Analysts at JPMorgan Cazenove have upgraded their forecasts for the year to December 2018 to cash profits of €501m and EPS of 182¢, from €442m and 158¢ in 2017.
| KINGSPAN (KGP) | ||||
| ORD PRICE: | 4,226¢ | MARKET VALUE: | €7.61bn | |
| TOUCH: | 4,218-4,226¢ | 12-MONTH HIGH: | 4,400¢ | LOW: 3,154¢ |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 912¢* | NET DEBT: | 44% | |
| Half-year to 30 Jun | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2017 | 1.75 | 163 | 74.4 | 11 |
| 2018 | 2.01 | 178 | 80.7 | 12 |
| % change | +15 | +9 | +8 | +9 |
| Ex-div: | 6 Sep | |||
| Payment: | 5 Oct | |||
| £1=€1.113 *Includes intangible assets of €1.34bn, or 743¢ a share | ||||
