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Profit falls 13pc at insulation giant Kingspan as it suspends interim dividend

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Kingspan CEO Gene Murtagh

Kingspan CEO Gene Murtagh

Kingspan CEO Gene Murtagh

Cavan-headquartered Kingspan has reported a fall in trading profit for the first half of this year, as Covid-19 impacted economies around the world.

Profit fell 13pc to €200.1m for the six months to June 30, according to interim results from the group.

The result is better than some analyst had expected.

Revenue for the period fell by 8pc year-on-year to just over €2bn.

Acquisitions contributed 6pc to sales growth and 4pc to trading profit growth in the period.

The company, which has more than €1bn in cash and undrawn facilities, has said it will not pay an interim divided to shareholders and that its shareholder returns policy “is under review.”

Kingspan has reduced its net debt to €437.9m as at June 30 from €734.3m at the corresponding time in 2019.

Gene Murtagh, chief executive of Kingspan, said: “Kingspan has delivered a resilient first half result in a period of unparalleled challenges.

We expect that the economic environment will remain weak, with confidence for businesses to make investment decisions curtailed. On a more positive note, policy makers are more focussed on ensuring buildings are more energy efficient, which is a supportive long-term trend.”

In the United States, Kingspan said activity performed well throughout the global pandemic, however, order intake “has eased back notably in recent weeks.”

While Spain, the UK and Ireland imposed the most severe and long-lasting restrictions, Kingspan said Germany and much of Central Europe continued largely uninterrupted.

The company said Ireland performed the weakest of all its global regions.

So far this year Kingspan has completed or agreed terms on three major acquisitions of businesses with revenue totalling over €400m.

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