Kingspan Group PLC AGM Statement (5334L)
April 20 2018 - 2:00AM
UK Regulatory
TIDMKGP
RNS Number : 5334L
Kingspan Group PLC
20 April 2018
Kingspan Group Plc
Trading Update
20 April 2018
Kingspan Group Plc, the global leader in high performance
insulation and building envelopes is issuing this Trading Update in
advance of its Annual General Meeting which is being held today at
10.00am in Dublin.
Overall, Kingspan has experienced a sluggish start to the year
reflecting markets which were slow to get moving largely due to a
prolonged winter season in many regions. Group sales of EUR895m for
the three-month period to 31 March were 8% ahead of prior year
(+12% pre-currency, +1% pre-currency and acquisitions).
By market during the first quarter, the UK was tough overall
although Insulated Panels activity improved somewhat in recent
weeks. Mainland Europe has been relatively stable. In the Americas
the US was generally positive, and Canada showed signs of recovery
from last year. Activity in Brazil has been strong in the first
quarter. Australasia performed solidly in the main whilst activity
in the Middle East has been picking up somewhat. Ireland has had a
good start to the year reflecting growth in the residential
sector.
Insulated Panels sales were up 4% (+8% pre-currency, -1%
pre-currency and acquisitions). The UK, whilst still trailing prior
year, has improved somewhat in recent weeks. Mainland Europe was
positive overall, with the exception of Germany and whilst North
America has been somewhat lacklustre, order intake has been strong
in recent months. Worldwide the specification bank for Quadcore(R)
continues to develop well.
Insulation Boards sales were up 7% (+11% pre-currency, +7%
pre-currency and acquisitions). Strong sales were recorded in the
early part of the year although the pace of sales growth eased
through the quarter. Revenue in the UK has been strong driven by
inflation and mix albeit with volumes down on prior year. Mainland
Europe performance has been particularly tough owing to the
significant levels of inventory in the system throughout the
industry. Other regions have started the year largely on plan.
Light & Air sales were up 56% (+60% pre-currency, +8%
pre-currency and acquisitions). The division had a good start to
the year particularly in Europe with acquisitions integrating
well.
Access Floors sales were down 11% (-4% pre-currency, -8%
pre-currency and acquisitions). As anticipated, sales in the UK
were behind in the quarter with the US broadly flat year on
year.
Environmental sales were up 6% (+10% pre-currency, -3%
pre-currency and acquisitions). The division experienced a slow
start to the year in most of its markets although it did see
improvement through the quarter.
Net debt at 31 March was EUR698m, an increase of EUR234m from
the position at last year end reflecting the completion of the
acquisition of Synthesia in March and the seasonal investment in
working capital. The Group's funding position is robust with
EUR660m of committed undrawn facilities and cash balances.
Looking ahead, the order backlog across the Group points towards
a good second quarter. Overall, the acquisitions completed both
last year and more recently are performing well and to plan. Given
the year-on-year relative mix of markets and activity, combined
with the initial impact of acquisitions, the Group's trading margin
percentage for the first half will be lower than the same period
last year. Notwithstanding the present trading environment, the
Group remains well positioned for the year as a whole and for the
longer term given the breadth of our product mix, our extended
geography and the ongoing advancement of our high-performance
technology.
Kingspan will issue its half-year financial report for the
period ended 30 June 2018 on Friday August 24th.
For further information contact:
Gene Murtagh, Chief Executive Officer Tel: +353 (0) 42 9698000
Geoff Doherty, Chief Financial Officer Tel: +353 (0) 42 9698000
Douglas Keatinge, Murray Consultants Tel: +353 (0) 1 4980300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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