Cavan-based building materials group Kingspan has reported a 9 per cent rise in profits in 2001 to €73.4 million, broadly in line with market expectations.
The group had issued a profit warning in February stating that its Tate subsidiary in the US had run up heavy losses in the last financial year. Commenting on the figures yesterday, Kingspan chairman and chief executive, Mr Eugene Murtagh said the issues at Tate had detracted from a strong performance from the group last year in mixed market conditions.
"Against an overall challenging background, the group's enlarged product portfolio remains strategically well positioned for the future. Cash generation can be expected to remain strong again in 2002 and this will enable the group to take advantage of any opportunities that arise," he said.
Shareholders will receive a 30 per cent increase in their annual dividend payment to 4.7 cents per share. Kingspan shares traded 10 cents higher on the back of the figures to €2.90. The Irish Stock Exchange is investigating heavy trading in Kingspan shares ahead of the profit warning.
Turnover in 2001 increased by 25 per cent to €828.9 million with Tate, which is a leading raised access flooring business, contributing €125 million. The €140 million acquisition has been a major disappointment, with Kingspan challenging a number of representations and warranties given by the vendor which are now the subject of binding arbitration.
