5th May 2016 07:45
LONDON (Alliance News) - Kingspan Group PLC on Thursday said it has experienced a strong start to the year thanks to robust underlying markets, a positive margin performance and a year-on-year benefit associated with acquisitions made in 2015, but noted it could be hit by further steel price increases.
The Irish insulation provider reported revenue of EUR903.1 million for the four months ended April 30, up 25% on the same period the previous year.
In the UK, it said it has seen an "understandable easing" in order placement in the non-residential segments in advance of the UK referendum on EU membership. However, beyond this, Kingspan said the project pipeline is "encouragingly ahead of this time last year".
In the US, Kingspan said the market is "solid overall". The company noted that it has prioritised margin over volume in its Insulated Panels division, where sales are "very robust".
In Mainland Europe, Kingspan said both the Netherlands and France have been "particularly strong performers", with Germany and Eastern Europe "very solid". Kingspan added that the Nordic region is progressing well in advance of its commissioning of an insulated panels facility in Finland, whilst the Cooperation Council for the Arab States of the Gulf region and Australasia are relatively flat year-on-year.
Looking ahead, Kingspan said its order backlog across the group points to a strong first half for the business, but said it is conscious comparatives will be tougher going into the second half.
Steel prices have increased modestly over the period to April 30, Kingspan said, and more substantial increases are expected to come in the third quarter. "We have positioned the business to recover this although it will be challenging given the likely extent of the increases," the company added.
Shares in Kingspan were up 2.1% at EUR23.36 on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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