21st Feb 2020 08:31
(Alliance News) - Kingspan Group PLC on Thursday reported an increase in revenue in 2019, but warned that macro instability resulted in weaker second half and this has continued into the current year.
The building materials company said revenue in 2019 rose 7.0% to EUR4.7 billion from EUR4.4 billion in 2018, while pretax profit increased 12% to EUR454.4 million from to EUR404.9 million in 20198.
As a result, the Kingscourt, Ireland-based company proposed a final dividend of 33.5 cents share, up 12% from 30.0 cents in 2018. Combined with the interim dividend of 13.0 cents per share, the total dividend for the year increased 11% to 46.5 cents from 42.0 cents.
Kingspan said that, despite significant macro instability in a number of its key markets, it performed well in the first half, but trading was weaker towards the end of the year.
At the start of 2019 the UK general activity was "healthy", the company said. However, "as the political uncertainty grew through the year more building projects were postponed which, when combined with accelerating deflation in the latter part of the year, resulted in a disappointing outturn overall."
Elsewhere the company achieved "significant progress" across all markets in the Americas during the period. However, in mainland Europe, the picture was mixed, with Central Europe and the Nordics performing "steadily" while the German market stagnated in 2019.
Chief Executive Officer Gene Murtagh said: "2019 was another year of solid growth for the business, ending a decade during which the company's revenue increased fourfold, and trading profit increased sevenfold."
Kingspan warned that uncertain economic outlook weakened group's performance towards year end and has continued into the current year, with sales in the early part of 2020 being behind the prior year.
"Despite the poor start we have experienced some element of recovery in order placement in recent weeks and our backlog globally is in reasonable shape. This could point towards an improved second quarter," the company said.
Kingspan shares were trading 0.3% lower in London at 63.25 pence each in London.
By Loreta Juodagalvyte; [email protected]
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