BUMPER SALES IN the UK for Cavan-based building materials heavyweight Kingspan were the major driver behind a jump in revenues and profits for the company in the first half of the year.
Most other markets saw revenues dip or remain static, with cashflow from the group’s Irish operations falling by €900,000 to €35.1 million.
On its Irish sales performance, the company said that market volumes are improving gradually from a “recent low base” but that “pricing remains under significant pressure”.
UK sales in the first quarter in particular, by contrast “grew strongly… as the general economy and new house construction remain on a path of recovery”.
Sales in the rest of Europe also dipped marginally from €316.6 million to €314.2 million, while a weak office building market in America contributed to a €5.9 million dip in sales there.
Bumper half year
However, the €44.6 million jump in UK sales was enough to drive a 4% jump in revenues to €889.3 million overall, while trading profits were also up impressively, coming in at €69.2 million, 24% ahead of the same period in 2013.
Kingspan Chief executive Gene Murtagh said that the company:
Has delivered strong growth in profitability, notwithstanding a tougher EU construction sector in the second quarter, and a global economic recovery that remains weak. Our order book carried good momentum into the second half of the year.
Davy delivered a glowing verdict on the powerhouse materials company’s half yearly results.
Analyst Flor O’Donoghue said that:
The group’s momentum is such that trading profits have now risen for nine consecutive halves, a record none of its peers can come close to replicating.
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