Kingspan on track for growth in 2005

Construction group Kingspan expects after-tax earnings to have grown by 30 per cent in the year to the end of December and it…

Construction group Kingspan expects after-tax earnings to have grown by 30 per cent in the year to the end of December and it was confident 2005 would be another year of "satisfactory" growth for the group.

The firm said in a trading statement full-year sales should be up over 18 per cent compared to 2003 and it forecast an EBITA margin of 10.7 per cent, in line with consensus expectations.

"Kingspan expect full year after tax earnings to be in the region of 30 percent up on 2003, ahead of current market expectations," it said.

"Taking into account an element of price inflation, as well as 2004 acquisitions, the company expects 2005 sales growth to be at a similar rate to that achieved in 2004.While some raw material price increases could put pressure on margins in 2005, Kingspan is confident 2005 will be another satisfactory year of growth," it added.

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Net debt at the year end was expected to be around €110-112 million compared to €121 million at the end of 2003.

Capital expenditure was some €60 million and the firm spent €20 million on bolt-on acquisitions, mostly on Apco, a panel business based in Belgium.

Kingspan will publish its 2004 results on March 8th.