SALES AT Kingspan showed year-on-year growth for the first time in three years, while operating profit also increased despite a globally “tumultuous” 2010.

The insulation and construction materials group saw sales rise 6 per cent as stability returned to the group and a number of regions and business areas reported progress.

Group revenue for 2010 was €1.19 billion, compared to €1.13 billion a year earlier, while operating profit for 2010 rose for the first time in three years to €67.4 million, an 8 per cent rise.

However, pretax profit fell to €55.7 million from €56.7 million in 2009.

In a statement yesterday the group reported adjusted earnings per share (EPS) of 30.9 cent, a rise of 20 per cent. Basic earnings per share grew 2 per cent.

Kingspan reported stability across the UK market as overall group sales in the region increased by 3 per cent.

The US insulated panel business was 16 per cent higher compared to 2009, while the company also bolstered its position in Australia as it integrated its 2009 acquisition Air-cell Insulations.

The group is also anticipating growth in continental Europe as the result of an agreement to buy CRH’s western European CIE Insulation business for about €120 million.

However, it cautioned that “real buoyancy” is likely to be absent from most of its markets in 2011.

The company said it had made “substantial” progress in reducing its debt, with net debt down to €128.7 million at the end of 2010 compared to €164.3 million previously. “The return of stability was a key theme in 2010, with Kingspan recording an increase in both sales and profits for the first time in three years,” said chief executive Gene Murtagh.

“The group has emerged from this period, albeit at a lower base, with a business that is broader and deeper than ever before.”

He added: “A combination of a strong balance sheet, recent acquisitions and new products provides a platform for Kingspan to drive further convergence to more efficient building solutions across an increasing global footprint.”

In relation to the Irish market, Mr Murtagh said the new-builds side of the market had not picked up but refurbishment and upgrading was “alive . . . without question”.

“People are realising that high-performance insulation is an effective alternative to high-cost energy,” he said.

Kingspan: 2010 results

Turnover:€1.190 billion (+6%)

Operating profit: €67.4 million (+8%)

Earnings per share: 30.9 cent (+20%)

SUMMARY

Last year the slide in revenues experienced by Kingspan since 2007 finally levelled out and began to show a small improvement.

Group sales rose 6 per cent to €1.19 billion, giving the first annual growth in three years. Operating profit increased by 8 per cent to €67.4 million, with an Ebitda (earnings before interest, tax, depreciation and amortisation) margin of 9 per cent.

Substantial progress was made in reducing the group's debt levels, with net debt of €128.7 million, down from €164.3 million.