LONDON (Alliance News) - Low-energy building solutions provider Kingspan PLC Thursday it has seen a strong trading start to the year, with an increase in sales, supported a buoyant UK market and and improving market conditions in continental Europe.
The company, which manufacturer insulated panels and rigid insulation boards, said that group sales in the first four months of the year increased to EUR561 million, up 8% on the prior year, and 9% at constant exchange rates.
"The general pick-up in activity in the UK, which we saw in the final quarter of 2013, has continued into the early part of 2014," the company said in a statement.
Kingspan said the Benelux market is showing signs of recovery, although industry activity is still low, while the German market remains solid.
It said its insulated panel business in North America continues to advance, driven by further market share gains, while business in the Middle East and Australia continues to grow.
Insulated panel sales were up 14% at current exchange rates, and 16% on a constant currency basis, in the first four months of the year, driven by increased market activity and market share gains.
Insulation board sales revenues were up 3% at current exchange rates and on a constant currency basis, boosted by an improving UK market, while access floor sales were down 9% at current exchange rates, as strong UK sales were offset by a slow US office environment. It said environmental sales revenues in the four month period were flat.
The group said its net debt stood at EUR124 million as at April 25, an increase from the prior year, partly due to the acquisition of the US facades business for EUR23.3 million.
"Looking ahead, the order backlog across the group points towards a strong first half for the business. Activity levels generally across our markets are encouraging. We remain mindful of the prevailing geo-political uncertainty and its potential to upset what has so far been a relatively nebulous recovery," said Chief Executive Officer Gene Murtagh in a statement.
Kingspan shares were down 1.2% at 13.39 pence Thursday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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