REG - Kingspan Group PLC - Trading Statement

KingspanAnnouncement

28/04/2023 07:00

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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 €2bn 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 €75m, 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 €1,416m, a reduction of €123m in the first
quarter. The Group's current liquidity is very strong with in excess of
€1.5bn in cash and undrawn committed facilities. In April, the Group agreed
new Private Placement Loan notes of €319m which when completed in June will
bring the aggregate private placement issuances to €1.6bn 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 €400m 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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