Kingspan forecasts full-year profit growth of 10%

Sales at insulation maker Kingspan advanced by 13 per cent in the first nine months ofthe year to September 30th, up to €1.32 billion. The pace of growth "progressed solidly" in the third quarter the Irish-listed group said, with sales up by 14 per cent. Pre-acquisition sales however fell by 3 per cent.

On a full-year basis, the group is forecasting trading profit growth of about 10 per cent for the year, given the “seasonally important” fourth quarter is yet to come.

While the group pointed to “clear evidence of recovery” in certain sectors of UK construction markets, and perhaps in pockets elsewhere, it noted that recovery in other markets is generally “more tentative”. In the US, the group pointed to a slowdown in activity in the third quarter, “although it is too early to call this as a trend”. Emerging regions for the group including Australia, Turkey and the Middle East continue to progress well, the group said..

Kingspan’s insulated panels division grew its sales by 33 per cent in the period under review, but pre-acquisition revenue again fell, down by 2 per cent.

“ Activity in the UK has picked up in more recent months and western Europe saw solid activity through the third quarter similar to what was experienced in the second quarter,” the group said in a statement.

Its insulation boards division saw sales fall by 3 per cent in the first nine months, with mainland European markets “ stable overall”,but the Netherlands is “stagnating at relatively low levels of activity”.

Environmental sales in the first nine months were behind last year by 14 per cent due to significantly lower sales in the first quarter. Sales recovered and improved through the third quarter falling by 8 per cent.

Access floors sales in the first nine months were 1 per cent behind the same period last year, although sales in the third quarter were behind by 6 per cent, with sales a little “subdued” more recently in the US.

The group’s net debt at the end of September stood at €146.8 million, €75.3 million lower than at the same point in 2012. The group is forecasting that net debt levels by year end should be in the region of €100 million.