3rd Sep 2007 07:01
Kingspan Group PLC03 September 2007 Kingspan Group plc 2007 INTERIM RESULTS Six months ended 30th June 2007 H1-2007 H1-2006 % change •'mn •'mn Sales 908.4 675.9 +34.4%EBITDA 136.2 108.1 +26.0%Operating Profit 114.2 88.0 +29.8%Operating Margin % 12.5% 13.0% -50bpProfit before tax 108.2 83.4 +29.7% •'cent •'centEarnings per share 52.7 40.4 +30.4%Dividend per share 8.00 6.00 +33% • Strong momentum maintained in the first six months with sales up 34.4% and earnings per share up 30.4%. • Insulated Panel and Insulation Board businesses delivered another period of significant growth in the UK through relentless conversion from traditional underperforming systems. • Growth in Insulated Panel sales in Central and Eastern Europe of 82%. • North American Panel operations strengthened by the acquisition of Coldmatic business in Canada, now re-branded Kingspan. • Total investment in the period of €102.9m comprising capital expenditure of €73.4m to support organic expansion, and €29.5m of acquisitions. • Consolidated position in the growing UK Offsite market with the acquisition of Potton and Pace around the turn of the year. • Entry into the emerging high growth Solar Thermal market. Gene Murtagh, Chief Executive Officer, commented: "Overall, with earnings growth in excess of 30%, the first half of 2007represented an excellent outturn for Kingspan. This pattern of growth wasunderpinned by a product and geographic blend that will continue to deliver asuperior performance for the Group in markets that are becoming increasinglyalerted to the significance of high performance building solutions in reducingdirect energy consumption and carbon emissions generally." For further information contact: James Dunny: Murray Consultants Tel: +353 (01) 4980 300Tim Thompson/Jeremy Garcia: Buchanan Communications Tel: +(44) 207 466 5000 INTERIM RESULTS STATEMENT Six months ended 30th June 2007 Kingspan Group plc announces half year results to 30th June 2007. Summary results • Turnover up 34.4% to €908.4 million (H1 2006: €675.9 million). • Operating Profit up 29.8% to €114.2 million (H1 2006: €88.0 million). • Basic earnings per share up 30.4% to 52.7 cent (H1 2006: 40.4 cent). • Interim Dividend up 33% to 8 cent per share (H1 2006: 6 cent). • Net debt, at €246.7 million, 39.7% of shareholder funds (32.6% at 30th June 2006). • Interest cover (based on EBITDA) was 22.7 times (H1 2006: 23.5 times). • Total investment in the period of €102.9m comprising capital expenditure of €73.4m to support organic expansion, and €29.5m of acquisitions. Insulated Panels & Boards Total sales in this business represented 55% of Group Sales. Insulated Panels Turnover in this business reached €365.2m in the period, representing 40% ofGroup turnover and an increase of 47% over H1 2006. In Ireland the retail, logistics and smaller indigenous industries have provedresilient in the first half of 2007, and combined they contributed to growth ofalmost 30% in the Panel business. Low-rise non-residential construction in the UK is marginally up on 2006, yetKingspan's Panel business has delivered another year of significant growththrough its relentless conversion of material choice away from traditionalunderperforming built-up systems. Revenue was up in the region well in excessof 20%. This advance has been supported by the increasing use of panelsolutions in lesser converted applications including tiled roofing, aluminiumstanding seam and modern facade specifications. Capacity will be increased from2008 to reflect the broadening market opportunity, particularly around wallproducts. Meanwhile, generally improved conditions in the Benelux markets havebeen beneficial and our Belgium based Door Panel business has continued to growits share of that sector. Australia and New Zealand delivered strong year onyear growth, and the local manufacturing facility will begin deliveries of wallproduct from Quarter 1, 2008, complimenting the existing roof and cold storagerange. The overall construction market in the emerging economies in Central & EasternEurope continues on a strong growth trajectory and Kingspan's business in theregion is up by 82%. This growth reflects the Group's acquisition in Turkey in2006, excluding which, the underlying growth rate was approximately 40% in whatwas an unseasonably strong start to the year. Indications are very positiveoverall and capacity is being doubled in the Czech Republic where a new plant isexpected to be commissioned in Quarter 3, 2008. In Turkey the Group has justcompleted a second plant, this time in the southern region, which recentlycommenced production. As yet, Kingspan's Panel business is in its development phase in North America.The Group's initial focus is on the Canadian market where sales in the firsthalf were on target reflecting mild comparable growth over 2006. Kingspan plansto exploit the specification market, which is becoming increasingly open tofaster methods of construction that deliver clear economic and environmentalbenefits. The Group expects to invest in the relocation of its Toronto facilityduring 2008 to a site more appropriate for the long term development of thebusiness. Insulation Boards Turnover in this business reached €140.0m in the period, representing 15% ofGroup turnover and an increase of 18% over H1 2006. In the UK the Group's Insulation business has shown growth in excess of 10% overthe same period last year. The new codes, which became law in April 2006, arebeginning to have an impact on penetration rates, and also on the averagethickness of materials. Growth in the phenolic product has been progressing asplanned, and additional capacity has been put in place to support the Group'sdrive behind this growing segment. This investment is currently going throughits commissioning phase in Ireland. The performance of the business in Ireland has been very robust despite theclear slowdown in residential construction, which is expected to continue intothe second half. Average thickness improvements, strong commercialconstruction, a strong one-off housing sector and the strength of NorthernIreland's commercial and housing sectors have all contributed to a steadyoutcome in the first six months. In Continental Europe, Benelux and Germany sales have shown an acceleratedpattern of growth led by greater acceptance of the phenolic product and ageneral improvement in conditions in the region. A new phenolic plant will beconstructed in the Netherlands during 2008, to commence production in 2009. Asimilar sized facility, this time in PIR foam, will also be constructed inPoland during 2008. This will be the Group's first rigid board facility inCentral Europe, where Kingspan sees strong potential for its insulationoffering. Environmental & Renewables Turnover in this division reached €141.6m during the period, an increase of 18%over 2006, and representing 16% of Group turnover. The period marked one of mixed performance in this division, which with itsdiverse range of environmental and water solutions, experienced some downs aswell as ups, resulting in slightly compressed margins overall. On Mainland Europe, in the Polish based business, there was strong growth onceagain in both sales and margins. This was largely the result of continuedgeographic expansion, particularly in Scandinavia. Fuel storage products in the UK & Ireland experienced a more challenging time asan overall decline in these markets delivered a reduction in unit sales ofaround 5%. This pattern will be alleviated over the medium term by a shifttowards higher value double skin containment solutions. As referred to in the2006 Preliminary Results Statement, product warranty claims relating to faultyraw material supplied a number of years ago continued during the period and thiscontinued to negatively affect margins. The Group expects to recover thesecosts from the supplier of the raw material. Effluent Treatment had a steady six months in both the UK & Ireland and a newgreenfield facility in Northern Ireland is nearing completion. This plant willsupply the all-Ireland market and will deliver savings in the near term. Hot water storage, a growing segment for Kingspan, provided another period ofgrowth as conversion towards pressurised systems in the UK continued. Duringthe period the Group has added a range of solar water systems to its offeringwhich, given the rapidly increasing move towards renewable energy sources, willcontinue to support growth in this segment. In all, margins were compressed in the Division but firm operational plans arein place to increase returns in this area over the medium term. Offsite & Structural Turnover in this division reached €169.3m during the period, an increase of 48%over H1 2006, and representing 19% of Group turnover. Structural products, typically used as secondary steel members in low-risenon-residential construction, experienced slight increases in the UK and wasparticularly strong in Ireland where the non-residential sector continued to bebuoyant. During the first six months of 2007, Ireland's residential construction sectorbegan to experience a slight reduction in output. This trend is likely todeteriorate somewhat in the second half of the year. Kingspan's Offsiterevenues in Ireland, representing around 3% of Group sales, were broadly flatbut are expected to slow in the second half. This moderation has coincided withsignificant increases in timber costs, which combined with the reduction inoutput, contributed to margin compression. It is clear, however, that futuremandatory thermal performance standards in Ireland will require a minimum 40%improvement on those of today. Much of the Group's recent R&D emphasis hasfocussed on designing products that will meet that need, and ultimately increasethe penetration of modern methods in Ireland. This dynamic shift in future requirements will be particularly evident in theUK, where plans to move towards compulsory Zero Carbon new build constructionin the residential sector were unveiled by the Government during the period.With the recent acquisitions of Pace and Potton, Kingspan has taken steps toconsolidate its position in advance of this trend. In the short term, the Group expects margins to be lower than previously, as itcontinues to restructure the recently acquired businesses. Access Floors Turnover in this division reached €92.3m in the period, an increase of 25% overthe same period in the prior year, and represented 10% of Group turnover. Office construction activity in the UK has continued the pattern of resumedgrowth that it has demonstrated for the last couple of years. Vacancy rates inLondon, a key indicator for medium and high rise development, is now in theregion of 5%. This is clearly visible in current trading at the Group's AccessFloors business and in the level of quotation activity for future projects. In North America Kingspan has experienced a significant upturn in Access Floorsactivity in the first six months of the year. This growth has been driven by aresilient office construction market, a buoyant data centre market, and anelement of continued penetration growth by Access Flooring systems across thecontinent. The manufacturing performance of the business is exceptionally lean,and has been a sizeable contributor to the rise in operating margin in NorthAmerica. As in Europe, quotation and order intake activity have both beenstrong and the Group's multi-branding approach to the market is proving a robustformula. This will be further enhanced by the recent bolt-on acquisition of ASPMaxcess in Ontario, Canada. FINANCIAL REVIEW Turnover and Operating Margins Group turnover increased by 34.4% compared with the corresponding period lastyear. The organic underlying growth, when the impact of acquisitions made in2006 and 2007 are excluded was 19.0%. The gross margin at 31.0% compares with 32.2% in the first half of 2006 and30.4% in the second half. This reflects some changes in product mix and thedilution effect of acquisitions as these are being bedded in from amanufacturing and operations viewpoint. Distribution costs as a percentage ofsales came down from 5.4% to 4.9% year on year, and administration costs camedown from 13.8% to 13.5% reflecting the benefits of operational leverage. The operating margin at 12.5% compares with 13.0% in the same period last yearand 13.3% for the full year 2006. Sales by geographical market (H1-2007 versus H1-2006) HI 2006 HI 2007 % change in 2007Ireland 126.0 145.0 +15%Britain and Northern Ireland 394.0 517.0 +31%Mainland Europe 112.0 163.0 +45%North America 36.0 66.0 +83% Sales by product group (H1-2007 versus H1-2006) H1 2006 H1 2007 % change in 2007Insulated Panel 248.5 365.2 +47%Insulated Board 119.2 140.0 +18%Offsite and Structural 114.6 169.3 +48%Environmental and Renewables 119.9 141.6 +18%Access Floors 73.7 92.3 +25% Cash Flow The table below summarises the Group's funds flow for H1-2007, H1-2006 and FY06 H1-2007 H1-2006 FY06 •'mn •'mn •'mnInflowsOperating Profit 114.2 88.0 194.0Depreciation 19.5 18.9 39.3Amortisation 2.5 1.3 2.7Pension contributions (1.5) (1.8) (4.6)Working Capital increase (63.5) (32.4) (48.5)Interest paid (5.5) (4.3) (8.4)Taxation paid (9.8) (7.7) (25.5)Others 9.4 3.1 17.7 Free cash flow 65.3 65.1 166.7 Acquisitions (29.5) (11.2) (107.3)Net Capital Expenditure (73.4) (24.9) (57.7)Dividends paid (20.8) (15.0) (25.1) Cash Flow movement (58.4) 14.0 (23.4)Debt translation (.7) (0.8) (0.7)Decrease / (Increase) in net debt (59.1) 13.2 (24.1) Net debt at start of period (187.6) (163.5) (163.5)Net debt at end of period (246.7) (150.3) (187.6) Working capital, expressed in terms of days sales, increased by 4 days comparedto 30th June 2006 (30th June 2007: 40 days; 30th June 2006: 36 days), thisequates to approximately €20m and is mainly carried in stock of raw material insupport of the increased levels of activity, particularly in panels referred toabove. These cashflows were used to fund net capital expenditure of €73.4m, andacquisition investment in five businesses of €29.5m. These movements resulted in net debt at the end of June 2007 of €246.7m, whichrepresents an increase of €59.1m from the €187.6m reported for the end ofDecember 2006. This represents gearing of 39.7% (30th June 2006: 32.6%) andcompares to current banking facilities in place of over €500m. BOARD CHANGES As planned, after 35 years in the Group, Mr Brendan Murtagh will retire from hisexecutive role as Head of Corporate Development on the 31st December 2007. Hehas agreed to remain as a non-executive director on the Board. The Chairman, onbehalf of the Board, extends his sincere gratitude to Brendan for his tremendouscontribution to the development of the Group both as a director and in hisvarious executive roles. As previously announced during the period, Mr Kevin O'Connell retired from theBoard following this year's AGM, and we were pleased to welcome to the Board MsHelen Kirkpatrick and Mr Louis Eperjesi as an additional non-executive andexecutive director respectively. OUTLOOK Among the key indicators of future performance in the Group are both orderintake and quotations. In the Group's larger businesses, these levels ofactivity have been greater than ever experienced in Kingspan before. InsulatedPanels and Access Floors have both entered the second half of 2007 with robustorder banks, while Insulation Boards is also expected to have a strong end tothe year. When combined with an anticipated steady outcome for both the Offsite& Structural and the Environmental & Renewables Divisions, the Group isconfident that the operating outcome for the year as a whole will exceed lastyear's performance of €194m by at least 20%. GROUP INCOME STATEMENTfor the period ended 30th June 2007 Notes Continuing Operations Acquisitions 6 months 6 months 6 months 6 months Year ended ended ended ended ended 30.6.07 30.6.07 30.6.07 30.6.06 31.12.06 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) • '000 • '000 • '000 • '000 • '000 Revenue 3 897,608 10,769 908,377 675,874 1,461,170Costs of sales (618,138) (8,708) (626,846) (458,434) (1,004,613)Gross profit 279,470 2,061 281,531 217,440 456,557 Operating costs (164,686) (2,649) (167,335) (129,426) (262,512)Operating result 114,784 (588) 114,196 88,014 194,045 Finance costs (6,781) (6,048) (11,620)Finance income 769 1,447 2,775Result for the period before tax 108,184 83,413 185,200Income tax expense (18,505) (15,424) (33,520)Net result for the period 89,679 67,989 151,680 Profit attributable to:Shareholders of Kingspan Group plc 89,171 67,979 151,032Minority Interest 508 10 648Attributable to shareholders of Kingspan Group plc 89,679 67,989 151,680 Earnings per share for the period 5Basic 52.7 40.4 89.8Diluted 51.4 39.4 87.8 GROUP BALANCE SHEETas at 30th June 2007 6 months 6 months Year ended ended ended Notes 30.6.07 30.6.06 31.12.06 (Unaudited) (Unaudited) (Audited) • '000 • '000 • '000AssetsNon-current assetsGoodwill 6 302,017 220,800 287,580Other intangible assets 7 16,116 10,949 17,117Property, plant and 359,165 258,589 294,875equipment Financial assets 208 774 227Deferred tax assets 2,694 2,263 2,694 680,200 493,375 602,493Current assetsInventories 161,416 106,403 130,868Trade and other 431,820 319,807 357,966receivablesCash and cash 40,934 105,819 69,060equivalents 634,170 532,029 557,894 Total assets 1,314,370 1,025,404 1,160,387 LiabilitiesCurrent liabilitiesTrade and other 295,248 223,809 259,112liabilitiesProvisions for liabilities and 47,222 30,699 42,554chargesDeferred consideration 7,266 6,633 5,659Financial liabilities 73,622 31,975 34,631Current tax liabilities 35,080 23,902 26,130 458,438 317,018 368,086Non-current liabilitiesPension and other employee 19,784 26,656 20,958obligationsFinancial liabilities 196,567 216,758 205,979Deferred tax 8,372 3,951 8,212liabilitiesDeferred consideration 10,161 731 10,355 234,884 248,096 245,504 Total liabilities 693,322 565,114 613,590 NET ASSETS 621,048 460,290 546,797 EquityEquity attributable to shareholders of KingspanGroup plcCalled-up share capital 22,285 22,073 22,161Additional paid-in 29,144 23,882 26,341share capitalOther reserves (23,715) (34,690) (25,601)Revaluation reserve 713 713 713Capital redemption 513 513 513reserveRetained earnings 588,253 446,862 519,390 617,193 459,353 543,517 Minority interest 3,855 937 3,280 TOTAL EQUITY 621,048 460,290 546,797 STATEMENT OF RECOGNISED INCOME AND EXPENSEas at 30th June 2007 6 months 6 months Year ended ended ended 30.6.07 30.6.06 31.12.06 (Unaudited) (Unaudited) (Audited) • '000 • '000 • '000 Net result for financial period attributable to Group 89,171 67,979 151,032shareholders Currency translation 2,044 (9,430) (4,657)Cash flow hedging in equity (91) (157) (337)Acturarial losses on defined benefit pension scheme - (4,265) (685)Income taxes relating to items charged or credited to equity - 1,279 206 Total recognized income and expense for the period 91,124 55,406 145,559 GROUP CASH FLOW STATEMENT for the period ended 30th June 2007 Notes 6 months 6 months Year ended ended ended 30.6.07 30.6.06 31.12.06 (Unaudited) (Unaudited) (Audited) • '000 • '000 • '000 Operating activitiesResult for the year before tax 108,184 83,413 185,200Adjustments 8 30,341 25,768 54,393Change in inventories (28,535) (9,910) (18,446)Change in trade and other receivables (67,997) (51,601) (68,313)Change in trade and other liabilities 37,855 30,104 48,669Pension contributions (1,499) (1,817) (4,561)Cash generated from operations 78,349 75,957 196,942Taxes paid (9,827) (7,725) (25,498)Net cash flow from operating 68,522 68,232 171,444activities Investing activitiesAdditions to property, plant and equipment (75,514) (26,510) (59,487)Increase in finance leases 2,807 - 67Proceeds from disposals of property, plant and equipment 2,110 1,636 1,747Proceeds from financial assets 19 - 528Purchase of subsidiary undertakings (26,561) (6,487) (70,815)Net cash acquired with acquisitions 716 (768) (7,073)Payment of deferred consideration in respect of acquisitions (2,241) (10,450) (16,102)Dividends paid to minorities - - (14)Interest received 784 1,340 2,654Net cash flow from investing (97,880) (41,239) (148,495)activities Financing activitiesProceeds from bank loans and loan notes 46,924 1,636 -Repayment of bank loans (12,915) (13,313) (35,998)Discharge of finance lease liability (124) (150) (2,406)Proceeds from share issues 2,188 1,149 3,288Interest paid (6,313) (5,603) (11,087)Dividends paid (20,767) (15,014) (25,103)Net cash flow from financing 8,993 (31,295) (71,306)activities Cash and cash equivalents at the beginning of the 61,864 110,231 110,231period Net increase in cash and cash equivalents (20,365) (4,302) (48,357)Translation adjustment (568) (1,456) (10)Cash and cash equivalents at the end of the period 40,931 104,473 61,864 Cash and cash equivalents as at 1st January 2007 were made upof: Cash and cash equivalents 69,060 120,165 120,165 Overdrafts (7,196) (9,934) (9,934) 61,864 110,231 110,231 Cash and cash equivalents as at 30th June 2007 were made up of: Cash and cash equivalents 40,934 105,819 69,060 Overdrafts (3) (1,346) (7,196) 40,931 104,473 61,864 Kingspan Group plcNotes to the Financial Statementsas at 30 June 2007 Accounting policies (Notes 1 & 2) 1 Basis of preparation The information presented in these condensed interim financial statements has been preparedin accordance with the IAS 34 issued by the International Accounting Standards Board and inaccordance with the accounting policies as set out on pages 64 to 70 of the Annual Reportfor the year ended 31st December 2006. The 2007 interim results and balance sheet are presented in Euro. Results and cash flowsof foreign subsidiary undertakings have been translated into Euro at the average exchangerates for the period, and the related balance sheets have been translated at the rates ofexchange ruling at the balance sheet date. The interim results for the half year to 30th June 2007 and 30th June 2006 are unaudited.The comparative figures for the year ended 31st December 2006 represent an abbreviatedversion of the Group's full accounts for that year which have been filed with the Registrarof Companies and on which the auditors, Grant Thornton, have issued an unqualified auditreport. These interim results are available on the Group's website (www.kingspan.com). A printedcopy will be sent by post to all registered shareholders. Copies may also be obtained fromthe Company's Registrars: Computershare Services (Ireland) Limited, Heron House, CorrigRoad, Sandyford Industrial Estate, Dublin 18. Kingspan Group plc is a public limited company domiciled in Ireland with its registeredoffice being held at Dublin Road, Kingscourt, Co. Cavan. Kingspan Group plc is a buildingproduct business focused on establishing leading market positions by providing innovativeconstruction systems and solutions with a global reach. 2 Reporting currency The currency used in this preliminary announcement is Euro. Results and cash flows offoreign subsidiary undertakings have been translated into Euro at the average exchangerates, and the related balance sheets have been translated at the rates of exchange rulingat the balance sheet date. Exchange rates used were as follows: Average rate Closing rateEuro = 30.6.07 30.6.06 31.12.06 30.6.07 30.6.06 31.12.06 Pound Sterling 0.675 0.687 0.682 0.673 0.684 0.670US Dollar 1.330 1.230 1.256 1.346 1.262 1.313Czech Koruna 28.172 28.522 28.367 28.700 28.480 27.590Polish Zloty 3.852 3.899 3.906 3.789 4.070 3.840Canadian Dollar 1.509 1.400 1.425 1.440 1.400 1.525Australian Dollar 1.645 1.656 1.668 1.585 1.710 1.670 3 Segment reporting Analysis by class of business Insulated Panels Offsite & Environmental Access TOTALSegment Revenue & Boards Structural & Renewables Floors •m •m •m •m •m Total Revenue - H1 2007 505.2 169.3 141.6 92.3 908.4Total Revenue - H1 2006 367.7 114.6 119.9 73.7 675.9Total Revenue - 2006 816.5 246.2 249.0 149.5 1,461.2 Intersegment revenue is not material and is thus not subject to separatedisclosure in the above analysis Segment Result (profit before finance costs) Insulated Panels Offsite & Environmental Access TOTAL TOTAL TOTAL & Boards Structural & Renewables Floors H1 2007 H1 2006 2006 •m •m •m •m •m •m •m Operating result - H1 2007 78.1 14.2 9.9 12.0 114.2Operating result - H1 2006 58.3 12.6 10.0 7.1 88.0Operating result - 2006 128.0 27.5 20.9 17.6 194.0 Finance costs (net) (6.0) (4.6) (8.8)Result for the period 108.2 83.4 185.2before taxIncome tax expense (18.5) (15.4) (33.5) Net result for the 89.7 68.0 151.7period Segment Assets and Liabilities Insulated Panels Offsite & Environmental Access TOTAL TOTAL TOTAL & Boards Structural & Renewables Floors H1 2007 H1 2006 2006 •m •m •m •m •m •m •m Assets - H1 2007 670.2 235.8 225.1 139.6 1,270.7Assets - H1 2006 457.3 149.4 172.7 137.9 917.3Assets - 2006 534.8 216.0 201.2 136.6 1,088.6 Liabilities- H1 2007 (193.4) (77.4) (52.1) (39.3) (362.2)Liabilities - H1 2006 (143.4) (60.1) (46.8) (30.9) (281.2)Liabilities - 2006 (163.8) (77.5) (50.5) (30.9) (322.7) Total assets less total 908.5 636.1 765.9liabilities Cash and cash 40.9 105.8 69.1equivalentsDeferred tax asset 2.7 2.3 2.7Interest bearing loans and borrowings (current and (270.2) (248.7) (240.6)non-current)Deferred consideration (current and non-current) (17.4) (7.4) (16.0)Income tax liabilities (current and (43.5) (27.9) (34.3)deferred) Total Equity as reported in Group 621.0 460.2 546.8Balance Sheet Other SegmentInformation Insulated Panels Offsite & Environmental Access TOTAL & Boards Structural & Renewables Floors •m •m •m •m •m Capital Investment - H1 2007 77.3 9.6 13.5 2.7 103.1Capital Investment - H1 2006 29.3 2.2 2.7 4.3 38.5Capital Investment - 2006 77.8 56.4 21.8 8.8 164.8 Depreciation included in segment result - H1 2007 (10.7) (3.6) (3.3) (1.9) (19.5)Depreciation included in segment result - H1 2006 (8.6) (2.9) (3.4) (3.9) (18.8)Depreciation included in segment result - 2006 (19.7) (6.8) (6.5) (6.3) (39.3) Amortisation included in segment result - H1 2007 (0.6) (1.4) (0.5) 0.0 (2.5)Amortisation included in segment result - H1 2006 (0.5) (0.6) (0.2) 0.0 (1.3)Amortisation included in segment (0.9) (1.3) (0.4) (0.1) (2.7)result - 2006 Non- Cash Items included in segment result - H1 2007 0.1 0.0 0.0 0.0 0.1Non- Cash Items included in segment result - H1 2006 0.5 0.0 0.0 0.0 0.5Non- Cash Items included in segment result - 2006 (0.1) 0.0 0.0 0.0 (0.1) Analysis of Segmental Data byGeography Republic of United Rest of Ireland Kingdom Europe Americas Others TOTAL •m •m •m •m •m •m Income Statement Items Segment Revenue - H1 2007 144.5 517.5 163.3 66.1 17.0 908.4Segment Revenue - H1 2006 125.7 394.3 111.2 36.3 8.4 675.9Segment Revenue - 2006 261.5 822.1 272.1 78.9 26.6 1,461.2 Balance Sheet ItemsAssets - H1 2007 188.2 750.4 195.3 118.5 18.3 1,270.7Assets - H1 2006 203.8 498.2 136.5 64.5 14.3 917.3Assets - 2006 162.6 653.2 171.1 87.2 14.5 1,088.6 Other segmentalinformation Capital Investment - H1 2007 15.1 57.2 12.4 17.5 0.9 103.1Capital Investment - H1 2006 2.6 16.1 3.8 3.9 12.1 38.5Capital Investment - 2006 21.6 87.5 21.1 21.5 13.1 164.8 4 Dividends An interim dividend at the rate of 8.00c per share (2006 : 6.00c) is payable on 5th October2007 to shareholders on the register at close of business on 14th September 2007. An interim dividend on Ordinary Shares is recognised as a liability in the Group'sfinancial statements on a cash paid basis under IFRS rather than on an accruals basis whichwas the accounting treatment previously adopted under Irish GAAP. The Final Dividend on Ordinary Shares for 2006 (€22.0 million) was approved by shareholdersin May 2007 and, in accordance with IFRS, was recognised as a charge to reserves in the sixmonth period ended 30 June 2007. 5 Earnings per share 6 months 6 months Year ended ended Ended 30.6.07 30.6.06 31.12.06 •'000 •'000 •'000The calculations of earnings per share are based onthe following: Profit attributable to ordinary 89,171 67,979 151,032shareholders Number of Number of Number of shares ('000) shares ('000) shares ('000) 30.6.07 30.6.06 31.12.06 Weighted average number of ordinary shares for the calculation 169,150 168,169 168,149of basic earnings per share Dilutive effect of share options 4,418 4,525 3,936 Weighted average number of ordinary shares 173,568 172,694 172,085for the calculation of diluted earnings per share • cent • cent • centBasic earnings per 52.7 40.4 89.8share Diluted earnings per 51.4 39.4 87.8share 6 Goodwill As at 30th June 2007 Goodwill • '000 At 1st January 287,580Additions 15,136Net exchange difference (699)At 30th June 2007 302,017 7 Other intangible assets As at 30th June 2007 Patents Brands Technical Other Total Know-how • '000 • '000 • '000 • '000 • '000 At 1st January 923 13,965 976 1,253 17,117 Additions - - - 1,500 1,500Amortisation (222) (1,832) (60) (383) (2,497)Net exchange difference - (14) 1 9 (4)At 30th June 2007 701 12,119 917 2,379 16,116 8 Cash flowstatement The following non-cash adjustments have been made to the pre-tax result for the period to arrive at operating cash flow: 6 months 6 months Year ended ended Ended 30.6.07 30.6.06 31.12.06Adjustments: •'000 •'000 •'000 Depreciation, amortisation and impairment charges of fixed and 21,989 20,116 41,957intangible assetsEmployee equity-settled share 2,392 1,532 3,492optionsFinance income (769) (1,447) (2,775)Finance cost 6,781 6,048 11,620(Profit)/loss on sale of tangible (52) (481) 99assets Total 30,341 25,768 54,393 9 Reconciliation of net cash flow to movement in net debt 6 months 6 months Year ended ended Ended 30.6.07 30.6.06 31.12.06 •'000 •'000 •'000 Decrease in cash and bank (20,365) (4,302) (48,357)overdrafts(Increase)/Decrease in debt, lease finance and (31,644) 22,277 54,506deferred consideration Change in net debt resulting from (52,009) 17,975 6,149cash flows Loans and lease finance acquired with subsidiaries (23) (3,969) (15,365)Deferred consideration arising on acquisitions in (3,590) - (14,086)the periodNew finance leases (2,807) - (67)Translation movement (689) (768) (679) Net movement (59,118) 13,238 (24,048) NET DEBT AT START OF THE PERIOD (187,564) (163,516) (163,516)NET DEBT AT END OF THE PERIOD (246,682) (150,278) (187,564) 10 Board approval The Interim Report was approved by the Board of Directors of Kingspan Groupplc on 31st August 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
KGP.L