LONDON (Alliance News) - Low energy building solutions provider Kingspan Group PLC reported higher profits for 2013, as recent acquisitions helped boost revenue by 10%.
The Ireland-based insulated panels and architectural facades manufacturer said it saw an improved momentum during 2013, despite demanding market conditions, which helped to deliver a strong operational performance, including increased profitability, a higher return on capital, and an improved dividend.
"With some tentative signs of improved economic stability and sentiment, Kingspan remains focused on its core strategy of delivering innovation, prudent management, and a widening global footprint that leaves the company well positioned to take advantage of any recovery that may take place in individual markets," said Chief Executive Gene Murtagh in a statement.
The group reported a higher pretax profit of EUR102.0 million for the year ended December 31, 2013, up from EUR90.0 million in 2012, which it said was driven by a 10% increase in revenues to EUR1.79 billion and trading margin improvement of 30 basis points to 6.9%.
The group said revenues were driven by strong insulated panels sales, boosted by the acquisitions of ThyssenKrupp Construction and Rigidal Industries LLC, which it said more than offset a decline in the sales of insulation boards and a 12% sales drop in its environmental business, which its said was partly caused by restructuring.
It said the trading year saw an usually slow start in construction activity in Northern Europe with momentum building thereafter.
The group said economic stability and sentiment improved during the year, in particular in the UK, where 34% of overall revenue came from in the period.
Kingspan said the Middle East saw positive trading, and Australia advanced as its products improved their market penetration.
The group said in North America the US federal government's political impasse affected construction decisions in 2013, but those affects have since subsided, which should give way to a more positive 2014.
"In all, the general consensus from within our own business, combined with more positive internal and external leading indicators, points toward gradually improving construction momentum into 2014," the company said in a statement.
The group declared a final dividend per share of 8.5 euro cents, taking its total dividend for the year to 14.0 cents, an increase of 14%.
It said it decreased its net debt to EUR107.6 million, down from EUR165.5 million in 2012.
Kingspan shares were trading 2.8% higher Monday morning at 14.19 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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