Kingspan expects a 30% profit boost in 2016

Currency fluctuations have hit the company's bottom line...

Kingspan expects a 30% profit boost in 2016

Kingspan CEO Gene Murtagh | Photocall file photo

Ireland's Kingspan expects its full-year profits to rise to €335m, that's a 30% increase on last year.

In a trading statement, the insulation company said that sales in the nine months to the end of September amounted to €2.27bn - that's 13% higher than the same period in 2015 - or 17% before currency fluctuations are taken into account.

The statement, issued to the stock exchange this morning, adds that sterling's fall is "impacting the translation of the group’s sterling denominated earnings."

The company also warned that this morning's projections are based on the assumption that current exchange rates prevail between now and the end of the year.

Insulated Panel sales in the first nine months increased by 17% (+20% pre-currency), and increased by 4% (+8% pre currency) in the third quarter.

It reports that business has been "positive" in the UK and "solid overall" in mainland Europe with France and the Benelux region performing particularly well while demand in Germany shows "softness." Trading in North America is labelled as "sluggish" in the statement.

Insulation Board sales in the first nine months were up 6% (+10% pre-currency changes) and were flat in the third quarter (+7% pre currency).

Light & Air the Group's new energy efficient day-lighting and natural ventilation operations are set to generate sales of €190m.

Net debt at the end of September 2016 was €466m, which is €52m higher than at the same point in 2015 due, in the main, to cumulative acquisition spend of €196m year-on-year.

It reports that net debt at year end is forecast to be in the region of €400m.