KGP.L Regulatory News (KGP)

18 Dec 2006 07:01

Kingspan Group PLC18 December 2006 Kingspan Group plc Trading update 18th December 2006 Kingspan Group plc, a leading manufacturer of an integrated range of productsfor the construction industry, announces the following trading update in advanceof its preliminary results for the 12 months to December 2006, which will beannounced on Monday 5th March 2007. Having achieved strong double-digit growth in the first half of 2006, momentumthroughout the Group has continued, with operating profit for the year as awhole expected to grow by approximately 33%. Strong underlying markets, acontribution from acquisitions and a favourable material pricing environmentcontributed to the performance. Net debt at year end is expected to be approximately €160mn, after €60mn incapital expenditure and an acquisition spend of €85mn on nine deals which havecombined annualised sales of over €100mn. In line with Kingspan's proven model,many of these acquisitions are effectively substituting for capital expenditure,thereby supporting further organic growth by strengthening the Group'sgeographic reach, as well as bolstering the range of solutions that can beoffered to both the residential and non-residential sectors. Organic growth was achieved across all products. In particular, the InsulatedPanels business led much of the advance, through both continued conversion in UK/Ireland and greater rollout of the products in Central and Eastern Europe. TheInsulated Panels manufacturing capability has been extended eastwards to Turkeywith the acquisition of a 51% stake in a local producer, which will enhance thereach of the Kingspan brand in the region. In anticipation of increasingenvironmental awareness, the Group has also made its first move into the NorthAmerican market with an acquisition in Canada. As already announced in theinterim results, the division purchased a controlling stake in a manufacturingfacility in Australia, where the insurance industry is demanding more FireSafe(R) building materials. Insulation Boards experienced significant unit growth in Ireland, and low singledigit growth in the UK and Continental Europe. Access Floors performed well onboth sides of the Atlantic, while Offsite and Structural performed well in boththe UK and Ireland. Environmental Containers grew largely as a result ofincreased penetration of unvented cylinders in the UK. Kingspan continues to be successful in anticipating the changing trends inbuilding methodologies, which underpins strong demand for its products. Thiscoupled with continued strength in its key geographic markets should offset anypotential moderation in activity levels in the Irish construction market andcurrent upward pressure in raw material prices. Overall, management expectsanother year of progress in 2007. For further information contact: Murray Consultants +353 (0)1 4980300James Dunny Buchanan Communications +44 (0)20 7466 5000Tim Thompson/Jeremy Garcia This information is provided by RNS The company news service from the London Stock Exchange