Kingspan reports strong sales growth in first half of 2017

Kingspan, the global leader in high performance insulation and building envelope solutions, reported a strong performance at the half-yaer stage and guided towards broadly positive end-market activity for the remainder of 2017.

For the six-month period ending 30 June, and excluding exchange rate effects, Kingspan saw revenues jump 19% to €1.75bn from €1.47bn in the year-ago period.

Acquisitions contributed 10% to sales growth and 6% to trading profit growth over that time span, the latter of which increased to €177.8m from €167.3m.

EBITDA was ahead by 6% to €209.2m from €196.8m, despite "ongoing raw material increases".

By operating segments, the company said insulated panel sales grew 17% amid continued improvement in Western Europe, solid activity in the UK and tougher, although resilient, performances in North America and Eastern Europe.

Insulation board sales grew 8% with ongoing advancement of its Kooltherm product in all key markets.

Light and Air sales of €81.7m also performed well in the company's 'maiden' results period.

At its environmental unit, revenues spead ahead by 12% to €88.9m.

Net debt increased to €440.3m or 1.06 times operating profits from €348.1m.

Gene Murtagh, chief executive of Kingspan said the board expected end-market activity to be broadly positive going forward.

"We expect end market activity to be broadly positive for the remainder of the year and at current exchange rates to deliver a full-year result at least in line with consensus," he said.

According to Murtagh, the board was also anticipating a further recovery of input increases: "whilst margins contracted somewhat, we anticipate further recovery of input increases in the second half.

"Our balance sheet is strong and ready to support our development agenda as the opportunities unfold."

Kingspan lifted its interim payout by 10% to 11 cents per share.

The company's shares were up 7.80% to €30.90 by 12:30 BST.