- Free cashflow boosted through increased efficiencies
- Grenfell disaster still weighing on sentiment
Kingspan (KGP) has reported a 2 per cent fall in full-year revenues for 2020, coupled with trading profits of €508 (£446m), a 5 per cent increase at constant currencies. The underlying margin was heading in the right direction, helped along by a 36 per cent sales increase in the Light & Air segment.
Improved operational efficiencies were also reflected in a 42 per cent hike in free cashflow, while net debt was down by nearly two-thirds to €236m, representing 0.4 times cash profits, against a multiple of 1.1 a year earlier.
The board has proposed a final dividend of 20.6 cents per ordinary share payable on 7 May, with an ex-div date of 25 March.
The building materials supplier also set out new actions designed to address “unacceptable employee conduct at its UK Insulation Boards business, and historical process shortcomings by this business”. It has been revealed that an employee of Arconic, the company which made the cladding panels used on Grenfell Tower, did not tell certifiers about a failed fire test on one of its products.
A decent set of figures, but given lingering legal uncertainties we stick on sell.
Last IC view: Sell, 6,155¢, 22 Dec 2020
| KINGSPAN (KGP) | ||||
| ORD PRICE: | 6,065ȼ | MARKET VALUE: | € 11bn | |
| TOUCH: | 6,030-6,045ȼ | 12-MONTH HIGH: | 8,465ȼ | LOW: 3,730ȼ |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 1,293ȼ* | NET DEBT: | 15% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
| 2016 | 3.11 | 314 | 144 | 33.5 |
| 2017 | 3.67 | 347 | 159 | 37.0 |
| 2018 | 4.37 | 405 | 184 | 42.0 |
| 2019 | 4.66 | 454 | 205 | 13.0 |
| 2020 | 4.58 | 460 | 206 | 20.6 |
| % change | -2 | +1 | +1 | +58 |
| Ex-div: | 26 Mar | |||
| Payment: | 07 May | |||
| £1=€1.16 *Includes intangible assets of €1.56bn, or 860ȼ per share | ||||
