Building materials group Kingspan today reported pre-tax profits of €224.2m for 2007, an increase of 21% on 2006, as revenues exapnded by 27.5% to €1.86 billion.
However, the company warned that its performance this year is likely to be well down if current conditions in the construction market continue.
Kingspan added that a significant slowdown in Irish house-building was likely to last until at least late 2009.
It said limited access to debt markets for investors and developers, along with dwindling consumer confidence, was leading to a fall-off in building activity.
Financial Highlights:
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2007 |
2006 |
% Change |
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Turnover |
€1,863.2mn |
€1,461.2mn |
27.5% |
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Operating profit |
€236.7mn |
€194.0mn |
22.0% |
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Net profit before tax |
€224.2mn |
€185.2mn |
21.0% |
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Basic earnings per share |
110.5 €cent |
89.8 €cent |
23.0% |
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Dividend per share for the year |
25.0 €cent |
19.0 €cent |
31.5% |
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Dividend cover |
4.4 times |
4.7 times |
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Interest cover |
22.8 times |
26.7 times |
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(EBITDA/Net Interest) |
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Gearing ratio |
33.4% |
34.3% |
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(net debt as % equity funds) |
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Gene Murtagh, Chief Executive of Kingspan commented:
“Kingspan delivered another record year of profitable growth in 2007. Our strategy of focusing on higher growth, energy sensitive segments of the building industry with a diverse product range will continue to be beneficial in dealing with a backdrop of challenging market conditions and the ongoing battle against climate change.
As a Group, we have little control over global market conditions, but are clearly taking all reasonable measures to respond to the immediate challenges facing the business. That aside, we believe our ability to penetrate further into existing markets and our continually expanding geographic reach, coupled with the growing global demand for energy conserving building systems, will provide excellent growth opportunities for Kingspan in the longer term.”
