Kingspan Group PLC Trading Statement (7763X)
28 April 2023 - 8:00AM
UK Regulatory
TIDMKGP
RNS Number : 7763X
Kingspan Group PLC
28 April 2023
Kingspan Group plc
Trading Update
28 April 2023
Kingspan Group plc, the global leader in high performance
insulation and building envelopes, issues this Trading Update for
the quarter ended 31 March 2023 ahead of our AGM at 9.00am
today.
Overall, the Group had a good first quarter in a challenging
environment. Group sales approached EUR2bn for the three-month
period to 31 March and were 4% ahead of prior year (-3%
underlying).
By market during the first quarter, the Americas overall was
strong, Western Europe was solid for the most part with Central
& Eastern Europe remaining tough, as it was for much of 2022.
Australasia has seen a decent start to the year.
Insulated Panels sales were down 5% (-6% underlying) with
volumes behind year on year versus a strong comparative when we
experienced an element of accelerated demand in a highly
inflationary environment this time last year. A feature of market
activity over the last 18 months or so has been gyrating activity
month on month. Whilst order placement in the first quarter has
been sluggish overall it did represent 25% of all orders placed
during 2022. QuadCore (TM) specification continues to progress
globally with lower embodied carbon (LEC) advancements likely to
help this further.
Insulation sales were in line with the first quarter of 2022
(-4% underlying). Technical Insulation continued its strong
performance of 2022 boosted by district heating demand with board
activity seeing some volume decreases and acoustic insulation
contributing well. Divisional activity is seeing the benefit of an
increasingly diverse range of end markets and its full spectrum of
products and applications.
Light, Air + Water sales were up 3% (+4% underlying) in the
first quarter. It was a milestone first quarter with the
establishment of this enlarged division from two previously
separate business units. Its end markets are in reasonable shape
overall with a solid pipeline of daylighting, natural ventilation
and rainwater harvesting applications.
Roofing + Waterproofing featured in Q1 2023 with no comparative
as the acquired platform came on board from mid-year 2022. A
further development step was taken in the first quarter with the
completion of the acquisition of the CaPlast business, a leading
German roofing solutions business with annual revenues of
approximately EUR75m, on 21(st) April.
Data + Flooring sales increased by 18% in the first quarter
(+18% underlying). Datacentre solutions continue to advance and are
offsetting the weakness in new office construction.
Net debt at 31 March 2023 was EUR1,416m, a reduction of EUR123m
in the first quarter. The Group's current liquidity is very strong
with in excess of EUR1.5bn in cash and undrawn committed
facilities. In April, the Group agreed new Private Placement Loan
notes of EUR319m which when completed in June will bring the
aggregate private placement issuances to EUR1.6bn at an average
fixed interest cost of 2.33% per annum and a weighted average
maturity of 5.5 years. This positions the Group very well,
providing interest rate certainty at attractive levels, in a
high-rate environment.
The Board has reviewed the Company's listing arrangements and
notes that current share trading on the London Stock Exchange (LSE)
is negligible as a percentage of total trading. The Board,
therefore, proposes to delist from the LSE subject to shareholder
approval and we will provide an update on process and timing in the
coming weeks. We remain committed to our primary listing on the
main market of Euronext Dublin, where the majority of share trading
takes place.
The Group's trading outlook is relatively short dated as has
been the case over the last year or so. The second quarter is a
demanding comparative, perhaps less so on order intake which
petered out in Q2 2022 after a strong first quarter. We expect to
deliver a trading profit of just over EUR400m for the first half of
2023 albeit with much of Q2 still remaining.
Overall, given ever increasing concerns around energy
conservation, the need for emphatic and accelerated reductions in
carbon, Kingspan's distinctive range of solutions and Planet
Passionate agenda positions the Group favourably for the years
ahead.
Kingspan's Annual General Meeting will take place at 9.00am
today.
For further information contact:
Gene Murtagh, Chief Executive Officer Tel: +353 (0) 42 9698016
Geoff Doherty, Chief Financial Officer Tel: +353 (0) 42 9698016
Pat Walsh, Murray Consultants Tel: +353 (0) 87 2269345
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