Kingspan shares regained nearly 9 per cent of their value yesterday after the company issued its promised trading statement, confirming that profits for 2002 were on track to meet expectations.
"While the business environment in which Kingspan operates remains uncertain, the group is pleased that. . . profits for 2002 remain in line with market expectations," the Cavan-based building materials group said.
Company broker Goodbody is forecasting adjusted earnings per share (EPS) will fall by 10 per cent to 33.6 cents, when the company releases full-year results on March 11th. It is forecasting the drop largely on the back of declines in raised access floor volumes.
Kingspan also said cashflow remained strong and net debt at year-end was expected to be between €132 million and €134 million compared to €170 million at the end of 2001.
Shares in the company, which fell by 10 per cent on Thursday amid nervousness ahead of the trading update, recouped 13 cents to close at €1.65 last night.
Analysts noted there was no information on the group's 2003 prospects with Davy saying its hunch was that the balance of risk was on the downside.
They also noted the shares, which are trading around five-year lows, had already priced in any downside risk.
Kingspan said it held as treasury shares the stock bought back last September but it intends to cancel these shares before year-end.
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