Kingspan sales jump 25pc as Brexit threat hits orders
Sales at insulation firm Kingspan increased by 25pc to €903.1m in the first three months of the year however, new orders at the firm have been hit ahead of the June vote on a British exit from the EU (Brexit).
In a trading update released to shareholders this morning the company posted increased revenues across its insulation boards, panels, access floors and environmental sectors.
Net debt at the end of April was €424m, which included two bolt-on acquisitions totalling €72m.
The company said it's conscious it will have a more difficult second half to the year.
"By market, in the UK over the last two months there has been an understandable easing in order placement in the non-residential segments in advance of the June 23 referendum," the company said in a statement.
Sales in the US market was very solid for the firm's insulation products where it says it is focusing on its margins ahead of its volume of sales.
Kingspan also said steel prices have increased "modestly" and that it is expecting further increases to come in the third quarter.
"We have positioned the business to recover this although it will be challenging given the likely extent of the increases. In addition, at current levels, the Euro Sterling exchange rate could be a progressive headwind as we move through the year.
"Overall, the group is in good shape and the combination of recent development activity, organic expansion and our relentless focus on innovation positions the Group well for the years ahead," the group said.
The trading update comes ahead of the company's AGM, which will be held in Dublin later today.