Kingspan Group PLC Trading Statement (4698D)
27 April 2017 - 4:00PM
UK Regulatory
TIDMKGP
RNS Number : 4698D
Kingspan Group PLC
27 April 2017
Kingspan Group Plc
Trading Update
27 April 2017
Kingspan Group plc, the global leader in high performance
insulation, building fabric, and solar integrated building
envelopes, is issuing this Trading Update in advance of its Annual
General Meeting which is being held today at 10.00am in Dublin.
Overall, Kingspan has experienced a good start to the year
reflecting a combination of solid underlying markets and the
acquisitions made in 2016 bedding down well. Group sales of
EUR831.2m for the three month period to 31 March were 24% ahead of
prior year (+26% pre-currency, +14% pre currency and
acquisitions).
By market, the UK remains solid overall although is a little
softer than at the turn of the year. Mainland European markets
continue to show signs of recovery with decent volumes overall. The
US market is a little more encouraging than conditions experienced
towards the end of last year. The Middle East and Turkey regions
are subdued, with Australia and its adjacent markets showing more
positive signs. A feature of all markets has been ongoing raw
material inflation and the associated recovery effort.
Insulated Panel sales revenues were up 32% (+33% pre-currency,
+16% pre-currency and acquisitions). Volumes in most key end
markets are positive with the key trading priority being margin.
Light & Air contributed 6% to divisional sales in the quarter,
on plan, and is an excellent addition to the Group's high
performance product suite.
Insulation Board sales revenues were up 8% (+11% pre-currency)
in the period. The Kooltherm(R) mix has been positive overall with
raw material inflation experienced in all territories and the
associated recovery underway. The Group's new Kooltherm(R) facility
for the Australasian market was successfully commissioned in
Melbourne during the period.
Access Floors sales revenues were up 6% (+8% pre-currency). US
activity is subdued, as was the case last year. The UK is holding
up well for the moment although the pipeline is indicating weakness
towards the end of 2017.
Environmental sales revenues were up 13% (+21% pre-currency, 3%
pre currency and acquisitions). Overall, the division has had a
good start to the year with the Rainwater harvesting business in
Australia a particular highlight.
Net debt at 31 March was EUR457m, an increase of EUR29m from the
position at last year end reflecting, in the main, the seasonal
investment in working capital. The Group's funding position is
robust with EUR639m of committed undrawn facilities and cash
balances.
Looking ahead, the order backlog across the Group overall points
towards a solid first half for the business. The project pipeline
is encouraging in most of our major markets, although trending
weaker in the U.K. in recent weeks. The key trading priority is the
pass through of increases in input costs, and the associated lag
likely to persist in a tight supply environment into the second
quarter, and perhaps beyond. As a consequence, likely sales growth
in the first half is expected to outpace profit growth in the
period. Overall, the Group remains well positioned given the
breadth of our product and market mix, our development agenda over
time, together with the ongoing advancement of our high performance
technology.
Kingspan will issue its half-year financial report for the
period ended 30 June 2017 on Friday 18 August 2017.
For further information contact:
Gene Murtagh, Chief Executive Officer Tel: +353 (0) 42 9698000
Geoff Doherty, Chief Financial Officer Tel: +353 (0) 42 9698000
Douglas Keatinge, Murray Consultants Tel: +353 (0) 1 4980300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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