Press releases

Results for the year ended 31 December 2009

01/03/2010

Kingspan Group Plc ("Kingspan"), the leading international manufacturer of an integrated range of energy conserving building solutions, today announces its preliminary results for the year ended 31 December 2009.

Financial Performance:

2009 2008 % Change
Turnover €1,125.5mn €1,672.7mn -33%
Operating profit €62.7mn €157.1mn* -60%
Profit before tax €56.7mn €68.1mn -17%
Basic earnings per share 28.7€cent 26.7€cent +7%
Dividend per share for the year nil 8.0€cent  
Interest cover (EBITDA/Net Interest) 9.4 times 14.6 times  
Gearing ratio (net debt as % shareholders funds) 28.1% 57.7%   

* before non-trading items

Operational Performance:

  • Solid performance in 2009 from the overall Group, despite hostile economic conditions.
  • Insulation Boards total sales volumes were down 23%, although growing sales and penetration in Western Europe.
  • Insulated Panel sales volumes in the UK, Ireland and Western Europe were down 33%, with particular weakness in the speculative development segment.
  • Insulated Panel sales volumes in North America were down 23%. Architectural façade products remained strong and the former Metecno business performed robustly in the circumstances.
  • Central & Eastern Europe panel volumes were also weaker, down 25%. A substantial reorganisation of this unit was implemented, and will be completed in H1 2010.
  • Access Floors sales volumes were down 31% globally, however, margins improved from 14% to 17.5%.
  • Across the Group, fixed cost reductions in the year of €50mn brings the total since peak to €66mn. This process is largely complete.
  • Total investment in the year was €48.1mn. The main projects were the completion of a new Kooltherm® phenolic insulation facility in the Netherlands, and the completion of a new solar thermal collector plant in Northern Ireland. The Group also entered the Australian thermal insulation market with the acquisition of AIR-CELL Innovations in December, complementing Kingspan's already growing Insulated Panel business in that region.
  • Excellent progress was made in debt reduction, with net debt at year-end of €164.3mn, down from €299.6mn. Operating working capital was €99mn lower than a year earlier.

2009's performance by operating segment was as follows:

Segment Result (profit before finance costs) Insulated Panels €'mn Insulation Boards €'mn Environmental & Renewables €'mn Access Floors €'mn Total €'mn
Trading Profit 26.3 13.5 1.8 25.5 67.1
Intangible Amortisation (2.8) (0.7) (0.8) (0.1) (4.4)
Operating result 2009 23.5 12.8 1.0 25.4 62.7
Finance costs (net)         (6.0)
Results for the period before tax         56.7
Income Tax Expense         (8.7)
Net result for the year         48.0

Gene Murtagh, Chief Executive of Kingspan commented:

"In 2009 we experienced a set of global challenges never encountered before by the business. In the circumstances, the Company delivered a robust and resilient performance having responded to the challenges by overhauling our cost structure and focusing on cash generation. Excellent progress has been made in debt reduction which positions the Company with one of the strongest balance sheets in the industry.

While the year ahead will present continued challenges, there is now tangible evidence of stability emerging with conditions becoming more predictable than in the recent past. Globally, energy conservation initiatives continue to gather pace which will play to the Group's strengths. Coupled with the strong actions taken to date, it leaves Kingspan in good stead as markets regain stability."

For further information contact:

Murray Consultants Tel: +353 (0) 1 4980 300
Ed Micheau  

View the complete Preliminary Results


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