Products firm reports record revenue
Products giant Kingspan posted a record revenue in the first half, with income topping €4bn for the first time.
The Irish firm said turnover in the six months to June was up 42% to €4.2bn (£3.6bn) with the firm admitting the first half of this year was a “period of remarkable contrast”. Pre-tax profit during the period increased 30% to €388m (£329m).
It added: “Kingspan’s exposure to high growth end markets and applications and a concerted worldwide move towards a more energy conscious future built environment all played a role in driving this outcome. Extraordinary levels of price inflation also had a meaningful influence as we passed on an unprecedented level of raw material increases received during 2021.”
Revenue from its biggest business, insulated panels, was up 39% to €2.7bn (£2.3bn) helped by buoyant workloads in the US where it opened a new production facility in Pennsylvania this May.
Net debt increased by €450.5m (£382m) to €1.2bn (£1bn) after the firm spent €351m (£298m) on acquisitions during the period. It also racked up a €16.1m (£14m) cost on getting rid of its operations in Russia.
Kingspan in January was ordered by the Office for Product Safety and Standards to halt sales of certain batches of its Kooltherm K15 product after they were initially found to meet a lower fire safety performance rating than advertised. A spokesperson for Kingspan said it had taken “swift action” to return the batches.
Kingspan’s Kooltherm K15 product hit the headlines after it emerged a small amount of it had been installed on Grenfell Tower. Kingspan later denied the firm had acted in a dangerous way when it emerged it had continued to sell Kooltherm K15 insulation for 14 years using a safety test certificate for a previous version of the product.
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