Kingspan Full Year Report Shows Revenue up 12 Percent in 2016
Full year results for Cavan-based building materials producer, Kingspan, released on Friday, showed revenue up 12% to €3.1 billion in 2016. Trading profit was up 33% to €340.9 million, while acquisitions contributed 11% to sales growth and 7% to trading profit growth in the year.
“2016 was another record year for Kingspan,” Kingspan Chief Executive Gene Murtagh said. “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. We are encouraged about the outlook for the first half of 2017, with the 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”.
Kingspan recorded a group trading margin of 11%, an increase of 180bps, while basic EPS up 35% to 143.8 cent. Final dividend per share was 23.5 cent and total dividend for the year up 34% to 33.5 cent.
Kingspan recorded a year-end net debt of €427.9 million, compared with €328 million in 2015. Net debt to EBITDA increased to 1.06x from 1.04x in 2015, while ROCE increased by 210bps to 17.3%.
Total capital investment in the year was €364 million, of which €113 million was capex, plus an acquisition spend of €251m.
Kingspan’s impressive results followed a strong performance in the UK, and economic recoveries in much of Western Europe. Insulated Panels had a strong year in the UK, however the North American market cooled off somewhat towards year end. European sales were strong in the Netherlands and France, whilst more flat in Germany.
Insulation Boards had another strong year in the UK with the US and European businesses making good gains. Kingspan reported that Environmental continued its recovery and posted strong margin expansion year on year.
Kingspan did note that Access Floors activity remained a challenge in North America, while the UK was positive and was unlikely to dip until the second half of 2017.