Shares in Kingspan added nearly 7 per cent to €2.50 yesterday, boosted by a positive trading statement at the annual meeting and the appointment of Mr Tom Mulcahy to the board.
The appointment of the former AIB chief executive and current Aer Lingus chairman as a non-executive director is seen as strengthening the board and corporate governance at the Cavan-based company.
Kingspan chairman and chief executive, Mr Eugene Murtagh, also told shareholders that sales in the first four months of 2003 were ahead of the same period last year in mixed market conditions.
"Overall, trading so far this year indicates a satisfactory outcome for 2003," Mr Murtagh said.
The company's insulated panels business in Ireland, Britain and central Europe is showing growth, although conditions in western European markets are more difficult.
The need for additional capacity has been identified and a new insulated panel line will be commissioned by mid-2004, Mr Murtagh said.
In all, he said the group expected to spend around €40 million on capital expenditure this year. Substantive new capacity is being installed to meet the strong demand it is experiencing for its insulation boards in all markets and will be commissioned in the third quarter of the year.
Mr Murtagh said the weakness of the dollar and sterling against the euro would have a negative translation effect on earnings this year but the worst effects of this should be offset through internal hedging.
Given that Britain accounts for around 60 per cent of group turnover, Mr Murtagh anticipates a currency impact of around €2 million to €3 million.
Meanwhile, Kingspan said it was still waiting for news on the outcome of the US arbitration process relating to the acquisition of the Tate flooring business in early 2001.
Mr Murtagh said that the three-person US arbitration panel had requested a 30-day extension earlier this year but 90 days had now elapsed without any further update. "We are in the same position as everyone else. We have no news," Mr Murtagh said.
"We expected to have news by now. No news is disappointing but we're hoping no news is good news," he said.
Kingspan is seeking substantial damages in redress for the disappointing acquisition of Tate, for which it paid $120 million (€101.9 million) only to find that major contracts failed to materialise.
Tate is expected to make a loss of "a couple of a million" in the current year, Mr Murtagh said, as the raised access flooring business in which it is involved remains weak.
At an extraordinary meeting after the annual meeting, shareholders gave the company authority to buy back up to 10 per cent of its issued share capital.
Kingspan was forced to suspend its share buyback programme last year after the Irish Takeover Panel ruled that it needed shareholder approval.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)