Kingspan sees first-half profits rise

Insulation specialist Kingpan has reported first-half pre-tax profits that were 22 per cent higher than the same period last year.

Pre-tax profits for the six months to the end of June totalled €44.5 million compared to €36.2 million a year earlier.

Revenues for the first-half of the year increase by 3 per cent to €757.4 million while trading profits rose 19 per cent to €52.7 million.

The group has declared an interim dividend per share of 5 cent, an 11 per cent increase on the same time last year.

Kingspan said the first six months of 2012 were characterised by a "relatively strong first quarter which flagged considerably towards mid-year."

It said it posted robust performances in both the insulated panels and insulation businesses in the UK where sales grew by 1 per cent. North America and Australasia were also regions in which the group performed strongly. However, it said trading conditions in Western European had been more difficult.

The group's insulated panels division recorded turnover of €361 million, up from €350 million a year earlier. Trading profit totalled €27.1 million. The company's insulated boards business was relatively strong during the first quarter but weakened during the second quarter, particularly in the UK and Netherlands.

Turnover in the insulated boards division totalled €232 million, compared to €222 million a year earlier. Trading profit was €15.5 million, up from €14.5 million.

Sales revenue from insulated panels in Ireland declined by 13 per cent during the first half of 2012, while volume declined by 9 per cent, as the market slipped further downward. Sales volume in insulated boards in Ireland declined again by 18 per cent or 9 per cent by revenue as the wider construction market dipped further.

"The trading environment across many of our geographies continues to be very uncertain which is having a moderating impact, albeit with Kingspan continuing to outperform the general markets in which we operate," said Kingspan chief executive Gene Murtagh in a statement.