Kingspan shares boosted by profit growth forecast
Specialist building products company Kingspan expects profits for this year to jump by around 15%, despite global uncertainties.
The upbeat forecast boosted the Co Cavan-headquartered group’s shares by up to 1.2% before gains pared back.
In a trading update, covering the first nine months of the year, Kingspan said it is targeting a trading profit in the region of €440m for 2018, as a whole. The group also said it is likely to end the year with a net debt of around €750m.
As of the end of September, Kingspan’s debt levels were close to €880m.
Kingspan said sales for the first nine months of the year amounted to €3.18bn, 18% up on a year-on-year basis; with third-quarter sales alone ahead 24%, on the same period last year.
Sales in the group’s core insulated panel division increased 20%, year-on-year, for the nine months. Its newer light and air division, a breakaway from the insulated panels arm, focusing on efficient daylighting and smoke management of buildings, increased sales 50%.
Kingspan established the light and day arm last year and is targeting annual revenues of €500m from it within four years.
Kingspan has continued to broaden its geographic presence moving into Brazil and India in the past year.
Its reliance on the British market has dwindled in the last decade. The UK now accounting for 25% of annual sales, rather than 75% 10 years ago but management is cautious about external factors, including Brexit.
“Overall, our end markets are reasonably stable and, while our orders-on-hand are strong, we remain cognisant of the general sense of nervousness prevailing globally,” it said in its trading update.
