12th Jan 2005 07:00
Kingspan Group PLC12 January 2005 Final Release 12 January 2005 Kingspan Group PLC Trading Update Kingspan Group Plc ('Kingspan' or the 'Company'), a major manufacturer of anintegrated range of products for the construction industry, today announces thefollowing trading update in advance of its preliminary results for the 12 monthsending 31 December 2004 which will be announced on Tuesday 8 March 2005. 2004 Overview Kingspan achieved 15.5% Sales growth in the first half of the 2004 and has seenthis momentum continue into the second half with some further price inflation.As a result the Company expect full year sales to be up over 18% on 2003. EBITA margin is ahead of the 10.1% achieved in 2003 and should be in line withthe consensus expectation of 10.7%. Kingspan expect full year after tax earnings to be in the region of 30% up on2003, ahead of current market expectations. Net debt at the year end is expected to be approximately €110 to €112mn comparedto €121mn at the end of 2003. This includes the receipt of $36mn in relation toTate Arbitration proceeds. Capital expenditure in 2004 was approximately €60mnand the Company spent some €20mn on bolt-on acquisitions, most notably €15mn onApco, a Panel business based in Belgium. Sales in the Panel, Insulation and Structural & Offsite divisions grew by morethan 20% in 2004. Environmental Container sales are expected to be up over 10%versus 2003. Sales of Access Floors in the US have grown very strongly in 2004,while the rate of decline in Europe has slowed somewhat in the second half. International Financial Reporting Standards (IFRS) Under IFRS reporting, the main areas to be impacted are Goodwill, Pensions andShare options. The Company does not expect these changes to materially impactearnings before goodwill. Restated Interim 2004 and Full Year 2004 results willbe made available at the time of the Interim 2005 results. Outlook The Company expect overall construction market conditions in 2005 to bereasonably favourable. The benefits of both capital investment and bolt-onacquisitions during 2004 should impact positively on efficiency and volumes inthe current financial year. Taking into account an element of price inflation,as well as 2004 acquisitions, the Company expects 2005 sales growth to be at asimilar rate to that achieved in 2004. While some raw material price increasescould put pressure on margins in 2005, Kingspan is confident 2005 will beanother satisfactory year of growth. For further information please contact: Murray ConsultantsDonnchadh O'Neil Tel: +353 1498 0300 Buchanan Communications Tel: +44 (0) 20 7466 5000Tim Thompson/Jeremy Garcia/Tom Carroll This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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