Construction materials supplier Kingspan has seen the strong revenue growth it achieved in the first half of 2005 carry over into the second half of the year.
In a trading statement released to the Irish Stock Exchange in advance of the release of its 2005 preliminary results at the beginning of March, the firm said its operating profit and earnings growth for the year will be significantly ahead of 2004 and in line with current market expectations.
In September, the Cavan-headquartered group raised its full-year earnings estimates after a drive to make buildings more energy efficient boosted demand for its products and spurred a forecast-topping rise in interim profit.
At the time, Kingspan said it expected operating profit of €143 million to €144 million in 2005 and sales around €1.25 billion, in line with market estimates. In 2004, the group posted operating profit of €103.3 million.
The group is aware of the weaker conditions in the UK construction sector and overall poor prognosis for the UK economy but does not expect this to have a significant impact on its business.
Kingspan said that the Irish market to continues to perform well across all product groups, the United States is steady and there was a significant upturn in business in Central and Eastern Europe in the fourth quarter.
At year end it expects to have debt of about €180 million following an investment of €140 million in acquisitions, largely focused on the UK residential sector, and capital spending of €45 million.
It expects these investments to pay off in the medium term as it begins to benefit from changes in construction methods.