Kingspan looking solid as revenue and earnings grow

High performance insulation and building envelope solutions provider Kingspan reported its preliminary results for the year to 31 December on Friday, with revenue up 12% to €3.1bn.

The London-listed firm posted a trading profit up 33% to €340.9m, and said acquisitions contributed 11% to sales growth and 7% to trading profit growth in the year.

Group trading margin was 11%, an increase of 180 basis points, while basic earnings per share were up 35% to 143.8 euro cents.

The board declared a final dividend per share of 23.5 euro cents, taking the total dividend for the year up 34% to 33.5 cents.

Year-end net debt stood at €427.9m, widening from €328.0m in 2015, and Kingspan’s net debt to EBITDA ratio was 1.06x, compared to 1.04x a year earlier.

“2016 was another record year for Kingspan, commented chief executive Gene Murtagh.

“Through our organic initiatives and acquisition strategy we are developing a truly global business well placed to capitalise on the transition towards a lower energy future.”

Murtagh said the board wase encouraged by the outlook for the first half of 2017, with a current order book solidly ahead of the same point last year.

“With low debt levels and strong cash generation we retain the flexibility to invest in new opportunities as they present themselves.”