INSULATION AND BUILDING envelope manufacturer Kingspan has increased revenue and trading profit on the back of what the company sees as a year of solid growth.
Total revenue rose to €4.7 billion (£4.2 billion) for the year to 31 December 2019, up 7% on 2018, while trading profit was up 12% to €497.1 million (£436.0 million).
Global sales of insulated panels, the company’s biggest division by revenue by some distance, increased by 7% despite the company experiencing a difficult UK marketplace in the second half of the year, which the company put down to the uncertain political climate.
Total UK revenue for the company dropped from €938.2m (£822.8m) in 2018 to €891.8m (£782.1m) in 2019.
Gene M. Murtagh, Chief Executive of Kingspan said, “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.”