Kingspan trading 'well ahead' of last year
Building materials group Kingspan said trading in the first four months of 2011 was well ahead of the same period last year albeit in more favourable weather conditions in the early part of the year.
In its interim management statement the company said group sales of €439.3m were 33pc ahead of last year’s sales in the same period.
The firm said after adjusting for the impact of the acquisition of the European Insulation businesses of CRH group sales were ahead of last year by 20pc in the four month period.
Of this 2pc reflects the positive impact of currency translation, 6pc was price with 12pc reflecting volume growth.
The Group’s percentage operating margin overall was in line with the same period in 2010, reflecting the impact of raw material price increases.
Net debt at the end of April was approximately €248.0m, an increase of €119.6m on the position at the end of 2010 due principally to the acquisition in the period. Interest cover remains in excess of 10 times.
Kingspan said in the UK, the market overall has been solid with a gradual improvement in residential construction, an increase in refurbishment activity and good volumes in non-office related building activity.
Mainland European markets are showing tentative signs of recovery with activity in Germany being particularly buoyant although order patterns in Eastern Europe remain somewhat erratic.
The group said North American businesses recorded a good performance overall in a flat construction market driven in the main by penetration growth in insulated panels and good data centre volumes in access floors offsetting the impact of a weaker office market.
The firm also said Australia recorded good sales growth in the period and Ireland, which represents 4pc of Group sales, was flat overall year on year.