Kingspan upbeat on back of robust markets

Kingspan is trading in markets that are "more robust than they have been for some time", shareholders were told yesterday.

Addressing the firm's annual general meeting (a.g.m.) in Dublin, Kingspan executive chairman, Mr Eugene Murtagh, said operating profits and earnings per share this year should be "comfortably ahead of 2003, in line with market expectations".

He told shareholders that sales in the first four months of the year had been ahead of the same period last year, adding that the growth had all been "organic led".

Kingspan is "confident" sales of its principal products in its main markets will continue to grow, Mr Murtagh said.

He later confirmed that this positive outlook extended to the firm's previously-troubled raised access floors division.

The upbeat a.g.m. statement helped to lift Kingspan's shares, which rose by four cents to €4.75.

The stock has also been helped by anticipation of its inclusion today in the MSCI Standard Index, which is tracked by fund managers.

In response to a shareholder question on the potential problems attached to rising steel prices, Mr Murtagh said the issue should not be damaging for Kingspan's margins.

He acknowledged however that a "dramatic" rise in steel prices could have an indirect effect on the firm by slowing down construction projects that would otherwise be completed.

He pointed out that Kingspan's composite panels include less steel than competing products and thus should be better-protected from volatility in the wider steel market.

Steel prices have risen markedly over the past year on the back of booming Chinese demand.

When asked by another shareholder about separating the roles of chairman and chief executive according to best practice in corporate governance, Mr Murtagh said that he intended to deal with the matter this year.

He later declined to give further detail on the timing of any decision but said he would continue to remain involved with the company as long as it remained "enjoyable" and he thought he could do a useful job.