KGP.L Regulatory News (KGP)

29 Jun 2007 07:01

Kingspan Group PLC29 June 2007 Kingspan Group Plc TRADING UPDDATE 29th June 2007 Kingspan Group plc is pleased to report that trading for the first six months of2007 has shown good growth over the same period last year. As stated at the AGM on 24th May, the Group's businesses in the UK, WesternEurope, Central Europe, and the US are all performing strongly, and despite thewell anticipated tempering of the Irish residential market, overall demand forKingspan products is well ahead in Ireland, reflecting the strength in thenon-residential sector. Insulated Panel volumes in the UK, Ireland, Western Europe and Central Europeare well ahead of prior year as conversion continues and CEE market activity hasbeen unseasonably buoyant. In Canada the Group is still in the very earlystages of development, but progress has been positive, although gradual.Insulation sales have been strong in the UK, and steady in Ireland where housingconstruction has moderated. Despite this moderation, Offsite sales in Ireland remained quite robust in theearly part of the year but clearly any slowdown in housing output would impactsales and margins in this Division. Measures taken by Kingspan to consolidatethe UK Offsite market are underway and have resulted in significantly increasedsales in the first six months of the year, although margins will remain lowwhile the integration process continues. The Environmental Division has experienced tough trading conditions in its fuelstorage product area in both the UK and Ireland, which was anticipated. Thishas been somewhat alleviated by the better performances of the expanding HotWater Systems and Water Treatment segments. This Division's Mainland Europeanbusiness, based in Poland, is continuing to show steady progress. Access Floors in Europe has continued to improve and is well up on prior year,while in North America this business is performing exceptionally well. As the Group accelerates its organic development, capital expenditure for thecurrent year and 2008 will be significantly up on previous years, withinvestment likely to exceed €120mn per annum. In general, order levels in the first six months of the year have been strong,and the Board anticipates that the current momentum of the businesses willcontinue in the immediate term. In the absence of any unforeseen circumstancesthe Group is confident, given the strong performance in the first six months ofthe current year, that operating profits for the year as a whole should grow inthe region of 20% over the figure of €194 million in 2006. Kingspan's interim results for the period ending 30th June 2007 will be issued on 4th September 2007. For further information contact: Murray Consultants +353 (0)1 4980300James Dunny Buchanan Communications +44 (0)207 466 5000Tim Thompson/Jeremy Garcia This information is provided by RNS The company news service from the London Stock Exchange