Kingspan – H114 results driven by better margins

Kingspan has reported H114 results with revenue up 4% lfl to €889.3m and EBITA up 24% to €69.2m reflecting a margin of 7.8% (+120 bps).

On an underlying basis the incremental margin was very strong at 37%. EPS was up 27% to 29.2c. Net debt declined yoy from €165.1m to €113.4m, while the dividend has been increased 14% to 6.25c per share.

In the outlook statement, management explains how the pace of economic recovery in its markets, notwithstanding some exceptions, has been glacial.

Order intake for the larger businesses has been strong in markets such as the UK, North America and Australia, which bodes well for H2. However, activity in Continental Europe has been much less positive and management flags that this could impact top line growth in H2, but it still expects margins to improve. Source: Investec