Company Announcements

 KINGSPAN GROUP PLC

 

PRELIMINARY RESULTS

 

Year Ended 31 December 2019

 

 

 

 

 

 

 

 

KINGSPAN GROUP PLC

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019

Kingspan, the global leader in high-performance insulation and building envelope solutions, reports its preliminary results for the year ended 31 December 2019.

 

Financial Highlights:

·    Revenue up 7% to €4.7bn, (pre-currency, up 6%).

·    Trading profit up 12% to €497.1m, (pre-currency, up 10%).

·    Free cashflow up 9% to €337.1m.

·    Group trading margin of 10.7%, an increase of 50bps.

·    Basic EPS up 11% to 204.6 cent.

·    Final dividend per share of 33.5 cent. Total dividend for the year up 10.7% to 46.5 cent.

·    Year-end net debt¹ of €633.2m (2018: €728.3m). Net debt¹ to EBITDA¹ of 1.1x (2018: 1.4x).

·    ROCE of 17.3% (2018: 16.8%).

 

Operational Highlights:

·  Insulated Panels sales growth of 7%. Strong performance in the Americas. Mainland Europe performed well overall with the notable exception of Germany. Difficult UK market particularly in the second half. Further headway in key markets on QuadCore™, now 9% of global sales.

·   Insulation Boards sales growth of 2%. Continuing progress on Kooltherm^® and share gain from traditional materials.

·  Strong underlying volume growth of 4% and 8% in Insulated Panels and Insulation Boards partially offset by the pricing impact of raw material deflation.

·   Light & Air sales growth of 12% buoyed by a strong performance in the US. Solid activity in Mainland Europe. Daylighting centre of excellence under construction in Ireland.

·   Water & Energy sales growth of 3% with progress in the Nordics, a difficult UK environment and more subdued rainwater harvesting activity in Australia.

·  Data & Flooring sales growth of 13% reflecting strong datacentre activity and geographic expansion in Europe.

 

Summary Financials:

	2019	2018	change
Revenue €m	4,659.1	4,372.5	+7%
Trading Profit2 €m	497.1	445.2	+12%
Trading Margin3	10.7%	10.2%	+50bps
Profit after tax €m	377.8	335.8	+13%
EPS (cent)	204.6	184.0	+11%

¹ Net Debt and EBITDA both pre-IFRS 16

² Operating profit before amortisation of intangibles

³ Trading profit divided by total revenue

 

Gene M. Murtagh, Chief Executive of Kingspan commented:

 

"2019 was another year of solid growth for the business, ending a decade during which the company's revenue increased fourfold, and trading profit increased sevenfold. Performance this year was helped by increased penetration of our proprietary high-performance insulation products QuadCore™ and Kooltherm^®. This structural shift in building techniques and materials used also drove our increased profit margins.

 

Organic expansion is supported by new production facilities we have commissioned during the year in the US, Brazil and Sweden, and the level of demand building in Southeast Asia will soon justify investment in local manufacturing capacity there. We also continue to focus on acquisition opportunities, and have a healthy pipeline of targets under consideration.

 

The uncertain economic outlook in our end markets has seen a slow start to 2020, however, Kingspan's longer-term growth potential is supported by investment in innovation to ensure we have a product suite that continues to differentiate us from the competition, operated through a sustainable business model that is underpinned by the ambitious Planet Passionate targets we set in 2019."

 

For further information contact:

 

Murray Consultants Douglas Keatinge

Tel: +353 (0) 1 4980 300

 

Business Review

2019 capped off a decade of great progress for Kingspan with revenue and trading profit ahead of prior year by 7% and 12% respectively. Over the past decade, sales and trading profit grew in excess of fourfold and sevenfold respectively. Group sales reached almost €4.7bn, and trading profit €497m. Despite the significant macro instability in a number of our key markets the Group performed well in the first half, but was weaker towards year end. Predictably, the UK was the most notable illustration of this.

 

Underlying volume growth at the larger Insulated Panels and Insulation Boards divisions was 4% and 8% respectively. Underlying revenue was 1% ahead in Insulated Panels and 1% lower in Insulation Boards reflecting the impact of lower pricing due to raw material deflation over prior year.

 

During the year we invested a total of €305m continuing on our path of both organic and new acquisition expansion worldwide. New facilities were either completed or commenced in Sweden, UAE, USA, the Netherlands and Brazil. Acquisition investment was €144m, comprising most notably Bacacier in France for €122m.

 

2019 marked the launch of our global Planet Passionate initiative, building upon the last decade of progress on our Net Zero Energy agenda. We have now embarked on our next ambitious 10- year journey to radically advance Kingspan across the four key themes of Energy, Carbon, Circularity and Water. This agenda is central to our purpose and entails the following targets and timelines:

 

 

Energy	Maintain our Net Zero Energy status Increase our direct use of renewable energy to 60% by 2030 Increase our on-site generation of renewable energy to 20% by 2030 Install solar PV systems on all wholly owned facilities by 2030
Carbon	Net zero carbon manufacturing by 2030 50% reduction in product CO2 intensity from our primary supply partners by 2030 100% zero emission company funded cars by 2025
Circularity	1 billion PET bottles upcycled into our manufacturing processes by 2025 All QuadCore™ insulation to utilise upcycled PET by 2025 Zero company waste to landfill by 2030
Water	5 active ocean clean-up projects by 2025 100 million litres of rainwater harvested by 2030

 

Insulated Panels

 

	FY '19	FY '18	Change
Turnover €m	3,031.9	2,823.1	+7%(1)
Trading Profit €m	316.1	281.8	+12%
Trading Margin	10.4%	10.0%	+40bps

(1)   Comprising underlying +1%, currency +1% and acquisitions +5%. Like-for-like volume +4%.

QuadCore™ penetration reached 9% globally, with sales up 36% over prior year. In Mainland Europe, the trading picture was quite mixed overall although most regions started the year ahead of 2018. France and Spain performed particularly well throughout the year as the Kingspan model has become more embedded in these markets in recent years. In the Benelux, revenue was marginally ahead although the Netherlands weakened in the last quarter owing to environmental legislation that affected progress on many building sites. This headwind is expected to ease somewhat in 2020. The German market has been key for us in recent years although it stagnated during 2019. We have taken steps to ensure our competitiveness is enhanced, including significant focus on QuadCore™. Poland and the broader Central European markets were steady as was our activity in the Nordics.

 

Significant progress was achieved across all markets in the Americas over the year. Penetration in the USA and Canada has continued to grow as modern and more efficient methods of construction become increasingly adopted and Kingspan's solutions become the basis of specification in many applications which historically would have used more traditional materials. The roll-out of QuadCore™ is also gaining momentum and this will be further enabled with the new production line in Modesto, California, that is nearing completion. In Latin America, progress has also been encouraging with a gradual gain in position in Mexico and continuing our momentum in Brazil where we opened a new facility in Cambui late last year. We have also broken ground on a fifth plant in the region which will be in southern Brazil. Other regions in Latin America are now also under developmental review.

 

At the outset of 2019 the UK backlog and general activity was healthy, showing no signs of the weakness that ensued in the second half of the year. As the political uncertainty grew through the year more building projects were postponed which, when combined with accelerating deflation in the latter part of the year, resulted in a disappointing outturn overall. QuadCore™, however, continued to grow in share. With the momentum in QuadCore™ continuing through early 2020, together with a more stable political backdrop, we should see activity improve from the evident weakness of the first quarter. 

 

Activity for Insulated Panels in Australia was solid over the year while in New Zealand the business advanced significantly over 2018. Although relatively embryonic in Southeast Asia, revenue has grown year-on-year and we continue to build a base level of demand in the region which should necessitate local manufacturing in the not too distant future. Our Indian business delivered its plan for the year while the Middle East remains a challenge for the Panels business.

 

Volume growth in Ireland was healthy for most of the year but weakened towards year-end, pointing towards a slow start to 2020.

 

Insulation Boards

 

	FY '19	FY '18	Change
Turnover €m	876.9	864.1	+2%(1)
Trading Profit €m	117.1	105.1	+11%
Trading Margin	13.4%	12.2%	+120bps

(1)  Comprising underlying -1%, currency +1% and acquisitions +2%. Like-for-like volume +8%.

On the whole, the Insulation Boards business performed well across Continental Europe. 2018 was marred by heavy raw material inflation followed by rapid deflation through 2019. This led to a challenge in maintaining price, and of course margins. Despite this, volumes grew substantially in the Benelux and Southern Europe and improved in Germany and the Nordics. A new Kooltherm^® plant will come on stream later this year in Sweden to support continued conversion from legacy mineral fibre insulation. Kooltherm^® volumes grew by 15% in the year.  

 

In the UK, volumes were strong in the early part of the period followed by weakness in the latter half of the year, largely owing to the uncertain political backdrop which was very pronounced at that point.

 

Progress continued in North America where our presence to date has been limited to a single XPS facility in the North East. We expect to build and commission a new PIR/QuadCore™ board facility during 2021/2022 which will be the first plant of our phased roll-out in the US, and will sit alongside a new Insulated Panel facility currently under development in Pennsylvania.

 

Our business in the Middle East delivered another year of solid growth largely in the Industrial Insulation sphere. Strong recovery was evident in the Australasia market as Kooltherm^® grew its presence against local legacy mineral fibre and other insulation materials. In Ireland, the business had a solid outcome for the year across both the Insulation Board and structural residential Timberframe business units.

 

Light & Air

 

	FY '19	FY '18	Change
Turnover €m	327.7	291.8	+12% (1)
Trading Profit €m	25.2	21.5	+17%
Trading Margin	7.7%	7.4%	+30bps

(1)  Comprising underlying +9%, currency +1% and acquisitions +2%.

Revenue grew by 12% in 2019 and trading profit by 17% aided by improving synergies and efficiencies as this relatively embryonic business segment evolves. The story was somewhat mixed however with activity in Germany weakening notably through the second half and the Benelux performed similarly. In contrast to this, France and Southern Europe generally experienced attractive growth supported by the recently commissioned new facility in Lyon from which we anticipate continued momentum through the current year.

 

North America delivered a stand-out performance across both the standard and architecturally bespoke offerings. The UniQuad^® wall-light, produced near Chicago, has also been launched across Europe where we anticipate penetration growth in the coming years.

 

Work has commenced on a significant plant expansion in Ireland to extrude polycarbonate daylighting for both roof and wall applications and we anticipate production to commence mid-2021.

 

Water & Energy

 

	FY '19	FY '18	Change
Turnover €m	208.1	202.9	+3%(1)
Trading Profit €m	14.2	14.2	-
Trading Margin	6.8%	7.0%	-20bps

(1)   Comprising underlying -3% and acquisitions +6%

2019 was a year of stability for the Water & Energy business segment with profit in line with prior year. The UK and Ireland were both broadly flat on prior year, Mainland Europe grew and in Australia sales weakened as housing starts in New South Wales came under pressure. This pattern can be expected to continue into the current year and more longer term we would expect to grow large scale water storage applications in more rural and afforested parts of Australia. The focus of this wider unit will increasingly revolve around water applications with a plan to establish a more global footprint beyond the European and Australian presence we currently have.

 

Data & Flooring

                

	FY '19	FY '18	Change
Turnover €m	214.5	190.6	+13%(1)
Trading Profit €m	24.5	22.6	+8%
Trading Margin	11.4%	11.9%	-50bps

(1)   Comprising underlying +4%, currency +3% and acquisitions +6%

2019 was a positive year for our global Data & Flooring business segment largely driven by an increased product offering into the data sector and our growing geographic presence in Europe.

 

The UK was predictably weak however as office construction faltered particularly in the greater London area. We anticipate this trend to remain a drag through 2020 compensated somewhat by growth in Germany and the Benelux. Whilst the data opportunity remains front and central to the division's future, the projects can be large and lumpy with respect to the timing, resulting in an inconsistent pattern of revenue. 2020 is expected to be no different in that regard.

 

Innovation

During the year we completed and opened our Global Innovation Centre, IKON, which sits alongside our headquarters in Kingscourt, Ireland.

 

The primary near-term focus is to soft launch PowerPanel^® 2.0, and the fibre-free A1 AlphaCore^® before the end of 2020. Both will offer Kingspan a significantly broadened specification opportunity and will no doubt be followed by more advanced iterations over the coming years. QuadCore™ 2.0 and the next generation of Kooltherm^® are also at the early stages of development as part of our ongoing innovation agenda.

 

Financial Review

 

The Financial Review provides an overview of the Group's financial performance for the year ended 31 December 2019 and of the Group's financial position at that date.

 

Overview of results

Group revenue increased by 7% to €4.7bn (2018: €4.4bn) and trading profit increased by 12% to €497.1m (2018: €445.2m) with an increase of 50 basis points in the Group's trading profit margin to 10.7% (2018: 10.2%). Basic EPS for the year was 204.6 cent (2018: 184.0 cent), representing an increase of 11%.

 

The Group's underlying sales and trading profit growth by division are set out below:

 

Sales	Underlying	Currency	Acquisition	Total
Insulated Panels	+1%	+1%	+5%	+7%
Insulation Boards	-1%	+1%	+2%	+2%
Light & Air	+9%	+1%	+2%	+12%
Water & Energy	-3%	-	+6%	+3%
Data & Flooring	+4%	+3%	+6%	+13%
Group	+1%	+1%	+5%	+7%

 

 

The Group's trading profit measure is earnings before interest, tax and amortisation of intangibles:

 

Trading Profit	Underlying	Currency	Acquisition	Total
Insulated Panels	+7%	+1%	+4%	+12%
Insulation Boards	+6%	+2%	+3%	+11%
Light & Air	+11%	+2%	+4%	+17%
Water & Energy	-2%	-	+2%	-
Data & Flooring	-	+3%	+5%	+8%
Group	+6%	+2%	+4%	+12%

                                                                                               

The key drivers of sales and trading profit performance in each division are set out in the Business Review.

 

IFRS 16 Leases

A new accounting standard, IFRS 16 Leases, was adopted with effect from 1 January 2019. The standard requires leases which were previously treated as operating leases to be recognised as a lease liability with the associated asset capitalised and treated as a right of use asset. On 1 January 2019, €127.9m of leases were recognised as liabilities on adoption of the standard and €128.8m capitalised as right of use assets. During 2019 depreciation on the right of use assets was €30.0m and the associated lease rental charge decreased by €31.8m leading to an increase in operating profit of €1.8m. The interest charge on the associated leases was €3.8m and the aggregate impact of IFRS 16 on profit before tax was a decrease of €2.0m.

 

Finance costs (net)

Finance costs for the year increased by €2.7m to €20.8m (2018: €18.1m). A net non-cash charge of €0.1m (2018: credit of €0.6m) was recorded in respect of swaps on the Group's USD private placement notes. The Group's net interest expense on borrowings (bank and loan notes) was €16.7m (2018: €18.0m). This decrease reflects lower average gross and net debt levels in 2019. The interest expense is driven extensively by gross debt balances with low cash yields in the current environment. An amount of €3.8m (2018: €nil) was recorded as interest on leases capitalised in accordance with IFRS 16 which was adopted with effect from 1 January 2019.

 

Taxation

The tax charge for the year was €76.6m (2018: €69.1m) which represents an effective tax rate of 16.9% (2018: 17.1%). The decrease in the effective rate reflects, primarily, the change in the geographical mix of earnings year on year and reductions in certain territorial tax rates.

 

Dividends

The Board has proposed a final dividend of 33.5 cent per ordinary share payable on 7 May 2020 to shareholders registered on the record date of 27 March 2020. When combined with the interim dividend of 13.0 cent per share, the total dividend for the year increased to 46.5 cent (2018: 42.0 cent), an increase of 10.7%.

 

Retirement benefits

The primary method of pension provision for current employees is by way of defined contribution arrangements. The Group has two legacy defined benefit schemes in the UK which are closed to new members and to future accrual. In addition, the Group has a number of smaller defined benefit pension liabilities in Mainland Europe. The net pension liability in respect of all defined benefit schemes was €15.1m (2018: €13.1m) as at 31 December 2019.

 

Intangible assets and goodwill

Intangible assets and goodwill increased during the year by €98.0m to €1,600.1m (2018: €1,502.1m). Intangible assets and goodwill of €95.2m were recorded in the year relating to acquisitions completed by the Group. An increase of €24.7m arose due to year end exchange rates used to translate intangible assets and goodwill other than those denominated in euro, offset by annual amortisation of €21.9m (2018: €22.2m).

 

Financial key performance indicators

The Group has a set of financial key performance indicators (KPIs) which are presented in the table below. These KPIs are used to measure the financial and operational performance of the Group and are used to track ongoing progress and also in achieving medium and long term targets to maximise shareholder return.

 

Key performance indicators	2019	2018
Basic EPS growth	11%	16%
Sales growth	7%	19%
Trading margin	10.7%	10.2%
Free cashflow (€m)	337.1	308.4
Return on capital employed	17.3%	16.8%
Net debt/EBITDA	1.1x	1.4x

 

(a) Basic EPS growth. The growth in EPS is accounted for primarily by a 12% increase in trading profit. The minority interest amount increased year on year due to a strong performance at the Group's operations which have minority stakeholders, leading to a basic EPS increase of 11%.

 

(b) Sales growth of 7% (2018: 19%) was driven by a 5% contribution from acquisitions, a 1% increase in underlying sales and a 1% increase due to the effect of currency translation. Whilst underlying sales growth overall was a modest 1%, volume growth exceeded this in many markets although it was partially offset by price deflation due to raw material price reductions.

 

(c) Trading margin by division is set out below:

	2019	2018
Insulated Panels	10.4%	10.0%
Insulation Boards	13.4%	12.2%
Light & Air	7.7%	7.4%
Water & Energy	6.8%	7.0%
Data & Flooring	11.4%	11.9%

 

The Insulated Panels division trading margin advanced year on year reflecting ongoing progress in sales of QuadCore™ and the market mix of sales. The trading margin improvement in the Insulation Boards division reflects a positive Kooltherm^® mix, operating leverage as a consequence of volume growth and a positive lag effect on raw material price reductions. The increased trading margin in Light & Air reflects improved efficiencies overall and the market mix of sales. The Water & Energy trading margin was broadly stable year on year. The decrease in trading margin in Data & Flooring reflects the geographic market and product mix of sales year on year.

 

(d) Free cashflow is an important indicator and it reflects the amount of internally generated capital available for re-investment in the business or for distribution to shareholders.

 

Free cashflow	2019	2018
	€m	€m
EBITDA*	579.8	521.2
Movement in working capital**	5.6	2.3
Movement in provisions	1.7	(5.8)
Net capital expenditure	(154.3)	(131.3)
Net interest paid	(16.7)	(15.6)
Income taxes paid	(87.2)	(75.0)
Other including non-cash items	8.2	12.6
Free cashflow	337.1	308.4

*Earnings before finance costs, income taxes, depreciation, amortisation and the impact of IFRS 16  

**Excludes working capital on acquisition but includes working capital movements since that point

 

Working capital at year end was €582.8m (2018: €543.9m) and represents 11.9% (2018: 11.5%) of annualised turnover based on fourth quarter sales. This metric is closely managed and monitored throughout the year and is subject to a certain amount of seasonal variability associated with trading patterns and the timing of significant purchases of steel and chemicals. The movement year on year reflects a 40 basis points increase in underlying working capital levels primarily due to higher inventory levels in recently acquired businesses.

 

(e) Return on capital employed, calculated as operating profit divided by total equity plus net debt, was 17.3% in 2019 (2018: 16.8%) or 17.7% including the annualised impact of acquisitions. The creation of shareholder value through the delivery of long term returns well in excess of the Group's cost of capital is a core principle of Kingspan's financial strategy. The increase in profitability together with the deployment of further capital has enhanced returns on capital during the year.

 

(f) Net debt to EBITDA measures the ratio of net debt to earnings and at 1.1x (2018: 1.4x) is comfortably less than the Group's banking covenant of 3.5x in both 2019 and 2018. The calculation is pre-IFRS 16 which is consistent with the Group's banking covenant.

 

Acquisitions and capital expenditure

During the period the Group made the following acquisitions for a total upfront cash consideration of €142.2m.

 

On 6 November 2019, the purchase of 85% of Group Bacacier SAS for an initial cash amount of €122.0m. The Group also made a number of smaller acquisitions during the year for a combined cash consideration of €22.2m:

 

·    the purchase of 100% of the share capital of WeGo Floortec GmbH, a German manufacturer of access floors;

·    the purchase of 100% of the share capital of Epur SA, a French water treatment business; and

·    the purchase of the assets of SkyCo a US Light & Air business.

 

The deferred consideration paid during the period of €59.7m (2018: €3.1m) represents €30m relating to the Synthesia business which was acquired in 2018 and €29.7m relating to the Isoeste business which was acquired in 2017.

 

Capital structure and Group financing

The Group funds itself through a combination of equity and debt. Debt is funded through syndicated and bilateral bank facilities and private placement loan notes. The primary bank debt facility is a €451m revolving credit facility, which was undrawn at year end and which matures in June 2022. In June 2019 an additional 3 year bank facility of €300m was arranged, which was undrawn at year end. As at 31 December 2019, the Group also had private placement loan note funding net of related derivatives totalling €814m. The weighted average maturity of the notes is 4.5 years. Subsequent to the year end the Group arranged a bilateral 'Green Loan' of €50m to fund the Group's Planet Passionate initiatives.

 

The Group had significant available undrawn facilities and cash balances which, in aggregate, were €942m at 31 December 2019. This, together with the Green Loan of €50m provides appropriate headroom for ongoing operational requirements and development funding.

 

Net debt

Net debt decreased by €95.1m during 2019 to €633.2m (2018: €728.3m). This is analysed in the table below:

 

Movement in net debt	2019	2018
	€m	€m
Free cashflow	337.1	308.4
Acquisitions	(142.2)	(469.2)
Deferred consideration paid	(59.7)	(3.1)
Share issues	0.1	0.1
Repurchase of treasury shares	(0.6)	-
Dividends paid	(77.6)	(68.3)
Dividends paid to non-controlling interests	(0.4)	(0.1)
Cashflow movement	56.7	(232.2)
Exchange movements on translation	8.4	(2.2)
Deferred consideration	30.0	(30.0)
Movement in net debt	95.1	(264.4)
Net debt at start of year	(728.3)	(463.9)
Net debt at end of year	(633.2)	(728.3)

 

Key financial covenants

The majority of Group borrowings are subject to primary financial covenants calculated in accordance with lenders' facility agreements which exclude the impact of IFRS 16:

-   A maximum net debt to EBITDA ratio of 3.5 times; and

-   A minimum EBITDA to net interest coverage of 4 times.  

 

The performance against these covenants in the current and comparative year is set out below:

 

		2019	2018
	Covenant	Times	Times
Net debt/EBITDA	Maximum 3.5	1.1	1.4
EBITDA/Net interest	Minimum 4.0	34.1	28.8

 

Investor relations

Kingspan is committed to interacting with the international financial community to ensure a full understanding of the Group's strategic plans and its performance against these plans. During the year, the executive management and investor team presented at nine capital market conferences and conducted 351 institutional one-on-one and group meetings.

 

Share price and market capitalisation

The Company's shares traded in the range of €35.70 to €55.25 during the year. The share price at 31 December 2019 was €54.45 (31 December 2018: €37.38) giving a market capitalisation at that date of €9.9bn (2018: €6.7bn). Total shareholder return for 2019 was 47.2%.

 

Financial risk management

The Group operates a centralised treasury function governed by a treasury policy approved by the Group Board. This policy primarily covers foreign exchange risk, credit risk, liquidity risk and interest rate risk. The principal objective of the policy is to minimise financial risk at reasonable cost. Adherence to the policy is monitored by the CFO and the Internal Audit function. The Group does not engage in speculative trading of derivatives or related financial instruments.

 

Looking Ahead

As flagged in our most recent trading update underlying sales in the early part of 2020 are behind prior year. Despite the poor start we have experienced some element of recovery in order placement in recent weeks and our backlog globally is in reasonable shape. This could point towards an improved second quarter.

 

Our acquisitions pipeline is healthy with a number of projects currently under consideration. Furthermore, the understandable ratcheting in recent months of the climate debate chimes fully with the advanced energy efficiency solutions provided by Kingspan and our Planet Passionate agenda. This, combined with the global footprint of our business and the strength of the Group's balance sheet, positions Kingspan well for the years ahead.

 

On behalf of the Board

 

Gene M. Murtagh	Geoff Doherty
Chief Executive Officer	Chief Financial Officer
21 February 2020	21 February 2020

 

 

Kingspan Group plc

 

Consolidated Income Statement

for the year ended 31 December 2019

 

	Note	2019 €m		2018 €m
REVENUE	2	4,659.1		4,372.5
Cost of sales		(3,304.3)		(3,158.0)
GROSS PROFIT		1,354.8		1,214.5
Operating costs, excluding intangible amortisation		(857.7)		(769.3)
TRADING PROFIT	2	497.1		445.2
Intangible amortisation		(21.9)		(22.2)
OPERATING PROFIT		475.2		423.0
Finance expense	3	(23.7)		(19.5)
Finance income	3	2.9		1.4
PROFIT FOR THE YEAR BEFORE INCOME TAX		454.4		404.9
Income tax expense		(76.6)		(69.1)
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS		377.8		335.8
Attributable to owners of Kingspan Group plc		369.4		330.9
Attributable to non-controlling interests		8.4		4.9
		377.8		335.8
EARNINGS PER SHARE FOR THE YEAR
Basic	8	204.6c		184.0c
Diluted	8	202.9c		182.3c

 

 

 

Gene M. Murtagh	Geoff Doherty	21 February 2020
Chief Executive Officer	Chief Financial Officer

 

                                                                                                                                               

                                                                       

 

Kingspan Group plc

 

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2019

 

 

		2019 €m		2018 €m
Profit for the year		377.8		335.8
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations		61.0		4.0
Effective portion of changes in fair value of cash flow hedges		(0.2)		0.3
Items that will not be reclassified subsequently to profit or loss
Actuarial (losses)/gains on defined benefit pension schemes		(0.2)		0.9
Income taxes relating to actuarial losses/gains on defined benefit pension schemes		-		(0.2)
Total other comprehensive income		60.6		5.0
Total comprehensive income for the year		438.4		340.8
Attributable to owners of Kingspan Group plc		430.2		337.1
Attributable to non-controlling interests		8.2		3.7
		438.4		340.8

 

 

 

 

 

 

 

 

Kingspan Group plc

 

Consolidated Statement of Financial Position

as at 31 December 2019

			2019 €m		2018 €m
ASSETS
NON-CURRENT ASSETS
Goodwill			1,506.9		1,391.0
Other intangible assets			93.2		111.1
Financial asset			8.2		8.2
Property, plant and equipment			965.2		850.5
Right of use assets			121.6		-
Derivative financial instruments			27.3		27.4
Retirement benefit assets			9.2		7.4
Deferred tax assets			14.1		15.6
			2,745.7		2,411.2
CURRENT ASSETS
Inventories			557.6		524.9
Trade and other receivables			794.2		798.6
Derivative financial instruments			-		0.2
Cash and cash equivalents			190.9		294.5
			1,542.7		1,618.2
TOTAL ASSETS			4,288.4		4,029.4
LIABILITIES
CURRENT LIABILITIES
Trade and other payables			768.9		779.8
Provisions for liabilities			58.0		47.5
Lease liabilities			25.6		-
Derivative financial instruments			0.1		-
Deferred consideration (including contingent consideration)			-		59.5
Interest bearing loans and borrowings			3.1		53.2
Current income tax liabilities			72.9		78.8
			928.6		1,018.8
NON-CURRENT LIABILITIES
Retirement benefit obligations			24.3		20.5
Provisions for liabilities			51.7		56.8
Interest bearing loans and borrowings			848.3		967.0
Lease liabilities			96.7		-
Deferred tax liabilities			31.9		40.8
Deferred contingent consideration			186.5		136.6
			1,239.4		1,221.7
TOTAL LIABILITIES			2,168.0		2,240.5
NET ASSETS			2,120.4		1,788.9
EQUITY
Share capital			23.8		23.7
Share premium			95.6		95.6
Capital redemption reserve			0.7		0.7
Treasury shares			(11.8)		(12.7)
Other reserves			(259.6)		(273.2)
Retained earnings			2,221.6		1,916.2
EQUITY ATTRIBUTABLE TO OWNERS OF KINGSPAN GROUP PLC			2,070.3		1,750.3
NON-CONTROLLING INTEREST			50.1		38.6
TOTAL EQUITY			2,120.4		1,788.9

 

Gene M. Murtagh	Geoff Doherty	21 February 2020
Chief Executive Officer	Chief Financial Officer