Interim Results
Kingspan Group PLC
05 September 2006
Kingspan Group plc
2006 INTERIM RESULTS
Six months ended 30th June 2006
H1-2006 H1-2005 % change
€'mn €'mn
Sales 675.9 580.1 +16.5%
Operating profit 88.0 67.0 +31.4%
Operating margin % 13.0% 11.5% +150bp
Profit before tax 83.4 62.4 +33.7%
€'cent €'cent
Earnings per share 40.4 30.7 +31.6%
Dividend per share 6.00 4.45 +35%
• Strong momentum was maintained in the first six months with sales up 16.5%
and operating profits up 31.4%.
• The trend of Insulated Panels in the UK gaining market share over built-up
systems was maintained in the first half and is underpinned going forward
by ongoing product development and regulatory change.
• From a regional perspective group sales were particularly strong in
Western and Eastern Europe with growth of 26% and 50%, respectively.
• Investment in future growth continued in the first half with net
capital expenditure of €24.9m versus depreciation of €18.9m.
• Reflecting an ongoing programme of geographic expansion, Kingspan acquired
a 51% stake in Eurobond Pacific, an insulated panel manufacturer in
Australia, a market which has significant growth potential.
• The construction industry and property owners globally are becoming
increasingly aware of both the costs and environmental implications of
higher energy consumption. This in conjunction with increasing acceptance
of Modern Methods of Construction (MMC) and ever more stringent building
regulations are the key drivers behind Kingspan's growth.
Gene Murtagh, Chief Executive Officer, commented:
'Results for the first six months represent a tremendous outcome for the Group.
Our products continue to gain share against traditional alternatives, bolstered
by the increasing awareness of the advantages of sustainable energy
construction. This dynamic, coupled with ongoing regulation change underpins
demand for our products and gives us confidence that substantial earnings growth
will be achieved for the year as a whole'.
For further information contact:
James Dunny: Murray Consultants Tel: (353 1) 4980 300
Tim Thompson/Jeremy Garcia: Buchanan Communications Tel: +(44) 207 466 5000
INTERIM STATEMENT
Six Months Ended 30th June 2006
Kingspan Group plc announces half year results to 30th June 2006.
Summary Results
• Turnover up 16.5% to €675.9 million (H1 2005 : €580.1 million).
• Operating profit up 31.4% to €88.0 million (H1 2005 : €67.0 million).
• Basic earnings per share up 31.6% to 40.4 cent (H1 2005 : 30.7 cent).
• Interim dividend up 35% to 6.0 cent per share (H1 2005 : 4.45 cent).
• Net debt as a percentage of shareholders' funds of 33% at 30th June 2006
(62% at 30th June 2005).
• Interest cover (based on EBITDA) was 23.5 times (H1 2005 : 17.9 times).
• Capital investment was €36.1 million in the period, of which €24.9 million
was net capital expenditure and €11.2 million was acquisitions.
The Directors of Kingspan Group plc are pleased to announce the results for the
Group for the six months ended 30th June 2006. Operating profit was €88.0
million, an increase of 31.4% on the corresponding period last year, on turnover
of €675.9 million, up 16.5%.
Basic earnings per share of 40.4 cent were up 31.6% compared to the same period
last year. It is proposed that an interim dividend of 6.00 cent per share will
be paid on 6th October 2006 to shareholders on the register at close of business
on 15th September 2006. This represents an increase of 35% on the 2005 interim
dividend. The interim dividend is covered 6.7 times by earnings.
INSULATED PANELS & BOARDS
Insulated Panels
Representing 37% of Group turnover, this product group delivered 17% growth over
the same period last year, and advanced in all its geographic markets.
Against a stable backdrop in low-rise non-residential construction in the UK,
insulated panels' sales grew by close to 11%, continuing the trend of actively
converting from less efficient traditional built-up methods. This pattern is
expected to continue and will increasingly be bolstered by more recent product
introductions that will continue to expand the available market for these
materials.
Ireland has continued to perform well and in the Benelux sales growth was in the
order of 33%, in a strengthening market.
Across Central & Eastern Europe, the Group's strategy of rolling out the model
throughout the region delivered exceptionally strong organic growth of over 30%.
Capacity utilisation and efficiency levels continue to rise in this relatively
young part of the Group's base. We are in the early stages of examining further
locations from which to expand in this developing region.
Having had a commercial presence in Australasia for a number of years, the first
half of 2006 marked the beginning of the next phase of Kingspan's development in
that region. Kingspan has entered into both manufacturing and sales joint
ventures in Australia & New Zealand respectively. This will provide us with an
early mover advantage in markets that offer long-term conversion potential for
Kingspan Firesafe(R) solutions, an approach that may be replicated to take
advantage of similar opportunities in other geographic markets currently under
consideration.
INSULATION BOARDS
Representing 17% of Group turnover in the period, this product group delivered
growth of 10% compared to the same period last year.
In the UK, this business's largest market, general levels of relevant
construction have been stable. Growth has been achieved through a slight
improvement in the penetration levels of Rigid Firesafe Insulation, reflecting
the full impact of the 2002 building regulations, and the subsequent
stabilisation of the purchasing patterns. In the period, the 2006 amendments to
the UK building codes became law, and are anticipated to yield significant
benefit to our Insulation business over the coming years. As previously
indicated, competition in the UK continues to intensify, particularly given the
medium term growth prospects for high performance insulation. Kingspan's focus
remains on being the lowest cost provider to this sector, with our clear product
differentiation and market driven philosophy. Substantial capital investment is
both underway and planned in this business, not only to meet the expected growth
in demand, but to ensure that our evolving technology continues to deliver
superior returns in a changing insulation environment. These projects will take
place not only in the UK, but also in Ireland, which once again during the
period, posted significant growth.
Kingspan entered into a Joint Venture with Recticel for the production of
industrial insulation late last year and this business is performing as planned.
ENVIRONMENTAL CONTAINERS
Representing 18% of Group turnover in the period, this division has grown by
17%, including acquisitions, compared to the same period last year.
In this division, the emphasis has been on achieving strong market positions, in
complimentary niche product areas. Its primary products are effluent treatment
solutions, fuel storage products and a number of water related systems. They
include pressurised and un-pressurised hot and cold water storage and
distribution, as well as rainwater harvesting systems which could prove an
attractive growth area in the future.
The operating performance in the first half was particularly strong in the hot
water and effluent treatment business units. Growth in the unvented cylinder
market was a key driver as these systems continued to gain share over the more
traditional gravity fed alternative.
In mainland Europe, last year's capacity expansion at our Polish facility has
supported structured growth of this business in the region. This was mainly into
Scandinavia, where we are assessing further potential avenues to expand our
activity.
OFFSITE & STRUCTURAL
Representing 17% of Group turnover in the period, this division grew by 17% over
the same period in 2005. Much of this growth is attributable to the acquisition
timing of Kingspan Century which was acquired in April last year.
In Ireland, the combination of a strong housing market and an evident increase
in people's awareness of lower energy building methods continues to drive growth
in the penetration of timber frame homes, now estimated at circa 27% of all
houses built. Both the investor's and the public's knowledge of the long-term
cost benefits of timber frame, the compelling build speed advantages of MMC, and
the looming regulation changes in 2008 all provide us with confidence in the
medium term prospects for this business in Ireland.
In England, progress to date has been slower. However, clear signs are emerging
that momentum in MMC penetration, not only for timber-based systems, but also
metal and indeed hybrid solutions, is rising. From its current low base of
approximately 11% penetration, it would not be unreasonable to expect that
figure to reach 20% by 2010. Although no significant progress has been made
to-date, the Group is committed to investing both in acquisition and capex, to
ensure Kingspan plays a leading role in this relatively small but growth niche.
Structural products performed soundly in the period, and in particular,
composite floor decking, used in commercial construction, is expected to be
strong during 2006.
ACCESS FLOORS
Representing 11% of Group turnover in the period, Access Floors growth was 27%
compared to the same period last year.
In the US, office construction has remained at significantly lower levels than
at its peak in 2001. Whilst this pattern clearly limits the available market
for our products, Kingspan's relentless focus has been on driving the
specification bank for under-floor air systems, that essentially incorporate our
floor panels. Although slowly, and in a weak market, penetration has been
improving. This, coupled with an advantageous sales mix, particularly around
Data Warehousing, and a lower cost base have underpinned a very satisfactory
result for the period.
In the UK, where penetration rates are much higher, the performance of the
business is improving with the early stage cyclical upturn in commercial office
construction in London, where vacancy rates are now estimated at less than 9%.
The project pipeline is healthy, and consistent with independent views on the
anticipated rate of office development over the coming 3 years or so.
ACQUISITIONS
During the period, Kingspan completed the acquisition of a 51% stake in an
Australian start-up company, Eurobond Pacific, since rebranded Kingspan, for
€11mn. The remaining 49% will be acquired at end 2007. Based in Sydney, this
facility will now supply the growing Australian and New Zealand markets with our
Firesafe(R) products for the food, industrial and retail sectors.
Kingspan also entered into an agreement to acquire Leanort Ltd, a holding
company for the Xtratherm & Hytherm insulation brands in the UK and Ireland for
up to €87 million. This is currently awaiting approval from the Competition
Authority.
FINANCIAL REVIEW
Operating Margins
The gross margin at 32.2% compares with 30.3% in the first half in 2005. This
improvement reflects some changes in product mix, efficiencies across the
operations and the recovery of raw material price increases. Administration
costs at €93 million were up 23% on the corresponding period last year, and 10%
on the second half of last year, reflecting the ongoing investment in product
and process development, which are important elements of the Group's strategy.
The operating margin at 13.0% compares with 11.5% in the same period last year
and 11.7% for the full year 2005.
Sales by geographical market (H1-2006 versus H1-2005):
% change in 2006
Ireland 21%
Britain and Northern Ireland 9%
Europe mainland 35%
United States of America 35%
Sales by product group (H1-2006 versus H1-2005):
% change in 2006
Insulated panels and boards 14%
Off-site and structural products 17%
Environmental Containers 17%
Access Floors 27%
Cash Flow
The table below summarises the Group's funds flow for H1-2006, H1-2005 and FY05
H1-2006 H1-2005 FY05
€'mn €'mn €'mn
Inflows
Operating profit 88.0 67.0 145.1
Depreciation 18.9 14.1 30.6
Amortisation 1.3 0.7 1.9
Pension contributions (1.8) (0.9) (2.9)
Working capital increase (32.4) (23.6) (9.4)
Interest paid (4.3) (2.3) (7.5)
Taxation paid (7.7) (8.9) (28.2)
Others 3.1 1.9 13.7
Free cash flow 65.1 48.0 143.3
Acquisitions (11.2) (137.3) (141.6)
Net capital expenditure (24.9) (17.4) (42.2)
Dividends paid (15.0) (10.3) (17.8)
Cash flow movement 14.0 (117.0) (58.3)
Debt translation (0.8) 0.1 2.9
Decrease / (Increase) in net debt 13.2 (116.9) (55.4)
Net debt at start of period (163.5) (108.1) (108.1)
Net debt at end of period (150.3) (225.0) (163.5)
Free cash flow at €65.1 million is up 36% on the corresponding period last year.
This reflects the strong underlying growth in profits. Working capital,
expressed in terms of days sales, remaining broadly unchanged at 36 days, as
compared to 37 at 30th June 2005.
These cashflows were used to fund net capital expenditure of €24.9m and
acquisition spend of €11.2m.
These movements resulted in net debt at the end of June 2006 of €150.3m, which
represents a reduction of €13.2 million from the €163.5 million reported for the
end of December 2005. This represents gearing of 33% and compares to current
banking facilities in place of over €450m.
OUTLOOK
Globally the construction industry and property owners are becoming increasingly
aware of both the costs and environmental implications of higher energy
consumption. It is evident that a growing number of investors are taking
voluntary steps to build as sustainably and efficiently as is practical. In
combination with this pattern, the UK Building Regulations became law during the
early part of this year. They will demand further improvements in building
materials and methodology. Kingspan is not only well positioned for this market
dynamic, but is committed to the R&D investment necessary to remain at the
leading edge of this evolving industry.
This backdrop, together with the solid performance of the Group in the first
half, give the Board confidence that substantial earnings growth will be
achieved for the year as a whole.
GROUP INCOME STATEMENT
Notes Continuing
Operations Acquisitions
6 months 6 months 6 months 6 months Year
ended ended ended ended ended
30.6.06 30.6.06 30.6.06 30.6.05 31.12.05
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
€ '000 € '000 € '000 € '000 € '000
Sales revenue 3 674,834 1,040 675,874 580,063 1,243,410
Costs of sales (457,749) (685) (458,434) (404,115) (866,348)
Gross profit 217,085 355 217,440 175,948 377,062
Distribution costs (36,274) (56) (36,330) (33,600) (71,582)
Administrative costs (92,822) (274) (93,096) (75,384) (160,411)
Operating result 87,989 25 88,014 66,964 145,069
Finance costs (6,048) (5,105) (11,607)
Finance income 1,447 543 1,535
Result for the period before tax 83,413 62,402 134,997
Tax expense, net (15,424) (11,297) (23,628)
Net result for the period 67,989 51,105 111,369
Attributable to minority interest 10 23 (9)
Attributable to shareholders of Kingspan Group plc 67,979 51,082 111,378
Earnings per share for the period 5
Basic 40.4 30.7 66.4
Diluted 39.4 29.8 64.8
GROUP BALANCE SHEET
Notes 30.6.06 30.6.05 31.12.05
(Unaudited) (Unaudited) (Audited)
€ '000 € '000 € '000
Assets
Non-current assets
Goodwill 6 220,800 210,323 217,736
Other intangible assets 7 10,949 13,382 12,265
Property, plant and equipment 258,589
243,976 250,757
Long term financial assets 774 26 755
Deferred tax assets 2,263 1,641 2,366
493,375 469,348 483,879
Current assets
Inventories 106,403 107,046 97,323
Trade and other receivables 319,807 305,408 268,124
Cash and cash equivalents 105,819 82,755 120,165
532,029 495,209 485,612
Total assets 1,025,404 964,557 969,491
Liabilities
Current liabilities
Trade and other liabilities 223,809 220,802 193,368
Provisions 30,699 21,244 30,252
Deferred consideration 6,633 14,104 16,777
Short term financial liabilities 31,975 44,010 38,864
Current tax liabilities 23,902 23,390 16,366
317,018 323,550 295,627
Non-current liabilities
Pension and other employee obligations 26,656 27,104 24,009
Long term financial liabilities 216,758 241,855 226,799
Deferred tax liabilities 3,951 3,146 5,173
Deferred consideration 731 7,787 1,241
248,096 279,892 257,222
Total liabilities 565,114 603,442 552,849
NET ASSETS 460,290 361,115 416,642
Equity
Equity attributable to shareholders of Kingspan Group plc
Share capital 22,073 21,865 22,003
Additional paid-in share capital 23,882 21,358 22,803
Other reserves (34,690) (24,786) (23,650)
Revaluation reserve 713 713 713
Capital redemption reserve 513 513 513
Retained earnings 446,862 341,015 393,898
459,353 360,678 416,280
Minority interest 937 437 362
TOTAL EQUITY 460,290 361,115 416,642
GROUP STATEMENT OF CHANGES IN EQUITY
30.06.06 30.06.05 31.12.05
(Unaudited) (Unaudited) (Audited)
€ '000 € '000 € '000
Balance at beginning of period 416,642 305,063 305,063
Cash flow hedging - in equity (157) (103) 18
Defined benefit pension scheme (4,265) (3,995) (2,979)
Currency translation (9,430) 16,093 15,032
Income taxes relating to items charged or credited to equity 1,279 1,211 891
Net income recognised directly in (12,573) 13,206 12,962
equity
Profit for the period 67,979 51,082 111,378
Total recognised income and expense for 55,406 64,288 124,340
the period
Shares issued 1,149 1,166 2,749
Employee share based compensation 1,532 876 2,256
Dividends (15,014) (10,300) (17,713)
Movement in Minority Interest 575 22 (53)
Balance at end of period 460,290 361,115 416,642
STATEMENT OF RECOGNISED INCOME AND EXPENSE
6 months 6 months Year
ended ended ended
30.6.06 30.6.05 31.12.05
(Unaudited) (Unaudited) (Audited)
€ '000 € '000 € '000
Profit for financial period attributable to Group shareholders 67,979 51,082 111,378
Cash flow hedging (157) (103) 18
Defined benefit pension scheme (4,265) (3,995) (2,979)
Currency translation (9,430) 16,093 15,032
Income taxes relating to items charged or credited to equity 1,279 1,211 891
Total income and expense recognised since last annual report 55,406 64,288 124,340
GROUP CASH FLOW STATEMENT
Notes 6 months 6 months Year
ended ended ended
30.6.06 30.6.05 31.12.05
(Unaudited) (Unaudited) (Audited)
€ '000 € '000 € '000
Operating activities
Result for the period before tax 83,413 62,402 134,997
Adjustments 8 25,768 20,289 46,625
Change in inventories (9,910) (3,473) 8,032
Change in trade and other receivables (51,601) (42,952) (5,627)
Change in trade and other payables 30,104 22,780 (4,392)
Pension contributions (1,817) (924) (2,873)
Cash generated from operations 75,957 58,122 176,762
Taxes paid (7,725) (8,908) (28,159)
Net cash flow from operating activities 68,232 49,214 148,603
Investing activities
Additions to property, plant and equipment (26,510) (18,282) (46,802)
Proceeds from disposals of property, plant and equipment 1,636 853 4,654
Proceeds from financial assets - 13 29
Purchase of subsidiary undertakings (6,487) (139,028) (142,970)
Net cash acquired with acquisitions (768) 18,250 18,910
Payment of deferred consideration in respect of acquisitions (10,450) (1,419) (1,441)
Dividends paid to minorities - - (44)
Interest received 1,340 521 1,606
Net cash flow from investing activities (41,239) (139,092) (166,058)
Financing activities
Proceeds from bank loans 1,636 159,350 151,458
Repayment of bank loans (13,313) (65,363) (89,862)
Discharge of finance lease liability (150) (212) (413)
Proceeds from share issues 1,149 1,166 2,749
Interest paid (5,603) (2,796) (9,138)
Dividends paid (15,014) (10,300) (17,713)
Net cash flow from financing activities (31,295) 81,845 37,081
Cash and cash equivalents at the beginning of the period 110,231 85,201 85,201
Net increase in cash and cash equivalents (4,302) (8,033) 19,626
Translation adjustment (1,456) 5,046 5,404
Cash and cash equivalents at the end of the period 104,473 82,214 110,231
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents, beginning of period 120,165 87,791 87,791
Overdrafts (9,934) (2,590) (2,590)
110,231 85,201 85,201
Cash and cash equivalents at the end of the period
Cash and cash equivalents, end of the period 105,819 82,755 120,165
Overdrafts (1,346) (541) (9,934)
104,473 82,214 110,231
Kingspan Group plc
Financial statements
30 June 2006
Notes
1 Basis of preparation
The financial information presented in this announcement has been prepared in
accordance with the International Financial Reporting Standards and
Interpretations issued by the International Accounting Standards Board and in
accordance with the accounting policies as set out on pages 53 to 57 of the
Annual Report for the year ended 31st December 2005.
The 2006 interim results and balance sheet are presented in Euro. Results and
cash flows of foreign subsidiary undertakings have been translated into Euro at
the average exchange rates for the period, and the related balance sheets have
been translated at the rates of exchange ruling at the balance sheet date.
The interim results for the half year to 30th June 2006 and 30th June 2005 are
unaudited. The comparative figures for the year ended 31st December 2005
represent an abbreviated version of the Group's full accounts for that year
which have been filed with the Registrar of Companies and on which the auditors,
Grant Thornton, have issued an unqualified audit report.
These interim results are available on the Group's website (www.kingspan.com).
A printed copy will be sent by post to all registered shareholders. Copies may
also be obtained from the Company's Registrars: Computershare Services (Ireland)
Limited, Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18.
2 Reporting currency
The currency used in this preliminary announcement is Euro. Results and cash
flows of foreign subsidiary undertakings have been translated into Euro at the
average exchange rates, and the related balance sheets have been translated at
the rates of exchange ruling at the balance sheet date.
Exchange rates used were as follows:
Average rate Closing rate
Euro = 30.6.06 30.6.05 31.12.05 30.6.06 30.6.05 31.12.05
Pound Sterling 0.687 0.686 0.684 0.684 0.665 0.678
US Dollar 1.230 1.286 1.245 1.262 1.217 1.185
Czech Koruna 28.522 30.123 29.836 28.480 30.000 28.920
Polish Zloty 3.899 4.083 4.029 4.070 4.100 3.830
3 Segment reporting
Analysis by class of business
Insulated Offsite & EC Access TOTAL
Panels
Segment Revenue & Boards Structural Floors
€m €m €m €m €m
Total Revenue - H1 2006 367.7 114.6 119.9 73.7 675.9
Total Revenue - H1 2005 321.4 97.9 102.8 58.0 580.1
Total Revenue - 2005 689.4 203.9 220.1 130.0 1,243.4
Intersegment revenue is not material and is thus not subject to separate
disclosure in the above analysis
Segment Result (profit before finance costs)
Insulated Offsite & EC Access TOTAL TOTAL TOTAL
Panels
& Boards Structural Floors H1 2006 H1 2005 2005
€m €m €m €m €m €m €m
Operating result - H1 2006 58.3 12.6 10.0 7.1 88.0
Operating result - H1 2005 43.7 10.1 8.8 4.4 67.0
Operating result - 2005 94.2 22.7 18.4 9.8 145.1
Finance costs (net) (4.6) (4.6) (10.1)
Result for the period before tax 83.4 62.4 135.0
Tax expense, net (15.4) (11.3) (23.6)
Net result for the period 68.0 51.1 111.4
Segment Assets and Liabilities
Insulated Offsite & EC Access TOTAL TOTAL TOTAL
Panels
& Boards Structural Floors H1 2006 H1 2005 2005
€m €m €m €m €m €m €m
Assets - H1 2006 457.3 149.4 172.7 137.9 917.3
Assets - H1 2005 381.6 204.8 164.1 129.7 880.2
Assets - 2005 413.3 134.6 161.2 137.9 847.0
Liabilities- H1 2006 (143.4) (60.1) (46.8) (30.9) (281.2)
Liabilities - H1 2005 (139.6) (63.3) (44.4) (21.9) (269.2)
Liabilities - 2005 (131.2) (50.2) (40.2) (26.1) (247.7)
Total assets less total liabilities 636.1 611.0 599.3
Cash and cash equivalents 105.8 82.8 120.2
Deferred tax asset 2.3 1.6 2.3
Financial liabilities (current
and non-current) (248.7) (285.9) (265.7)
Deferred consideration (current
and non-current) (7.4) (21.9) (18.0)
Income tax liabilities (current
and deferred) (27.9) (26.5) (21.5)
Total Equity as reported in
Group Balance Sheet 460.2 361.1 416.6
Other Segment Information
Insulated Offsite & EC Access TOTAL
Panels
& Boards Structural Floors
€m €m €m €m €m
Capital Investment - H1 2006 29.3 2.2 2.7 4.3 38.5
Capital Investment -H1 2005 32.5 74.3 40.9 0.4 148.1
Capital Investment -2005 67.3 66.7 45.4 7.2 186.6
Depreciation included in segment result - H1 2006 (8.6) (2.9) (3.4) (3.9) (18.8)
Depreciation included in segment result - H1 2005 (7.1) (2.1) (3.0) (1.9) (14.1)
Depreciation included in segment result - 2005 (14.8) (5.0) (6.3) (4.5) (30.6)
Amortisation included in segment result - H1 2006 (0.5) (0.6) (0.2) 0.0 (1.3)
Amortisation included in segment result - H1 2005 (0.2) (0.3) (0.2) 0.0 (0.7)
Amortisation included in segment result - 2005 (0.8) (0.8) (0.3) 0.0 (1.9)
Non- Cash Items included in segment result - H1 2006 0.5 0.0 0.0 0.0 0.5
Non- Cash Items included in segment result - H1 2005 0.1 (0.1) 0.0
Non- Cash Items included in segment result - 2005 (1.9) (0.1) 0.2 0.0 (1.8)
Analysis of Segmental Data by Geography
Republic United Rest of Americas Others TOTAL
of Ireland Kingdom Europe
€m €m €m €m €m €m
Income Statement Items
Segment Revenue - H1 2006 125.7 394.3 111.2 36.3 8.4 675.9
Segment Revenue - H1 2005 104.0 362.0 82.4 27.0 4.7 580.1
Segment Revenue - 2005 215.3 753.3 196.4 63.7 14.7 1,243.4
Balance Sheet Items
Assets - H1 2006 203.8 498.2 136.5 64.5 14.3 917.3
Assets - H1 2005 147.7 555.0 116.8 60.0 0.7 880.2
Assets - 2005 119.2 532.8 127.6 66.1 1.3 847.0
Other segmental information
Capital Investment - H1 2006 2.6 16.1 3.8 3.9 12.1 38.5
Capital Investment - H1 2005 14.1 28.6 104.7 - 0.7 148.1
Capital Investment - 2005 22.8 36.1 124.2 0.8 2.7 186.6
4 Dividends
An interim dividend at the rate of 6.00c per share (2005 : 4.45c) is payable on
6th October 2006 to shareholders on the register at close of business on 15th
September 2006.
An interim dividend on Ordinary Shares is recognised as a liability in the
Group's financial statements on a cash paid basis under IFRS rather than on an
accruals basis which was the accounting treatment previously adopted under Irish
GAAP.
The Final Dividend on Ordinary Shares for 2005 (€15.0 million) was approved by
shareholders in May 2006 and, in accordance with IFRS, was recognised as a
charge to Reserves in the six month period ended 30th June 2006.
5 Earnings per share
6 months 6 months Year
ended ended ended
30.6.06 30.6.05 31.12.05
€'000 €'000 €'000
The calculations of earnings per share are based on the following:
Profit attributable to ordinary shareholders 67,979 51,082 111,378
Number of Number of Number of
shares shares shares
('000) ('000) ('000)
30.6.06 30.6.05 31.12.05
Weighted average number of ordinary shares for the calculation of
basic earnings per share 168,169 166,306 167,625
Dilutive effect of share options 4,525 5,010 4,269
Weighted average number of ordinary shares for the calculation of
diluted earnings per share 172,694 171,316 171,894
€ cent € cent € cent
Basic earnings per share 40.4 30.7 66.4
Diluted earnings per share 39.4 29.8 64.8
6 Goodwill
Goodwill
€ '000
Carrying amount 31 December 2005 217,736
Additions 7,034
Net exchange difference (3,970)
Carrying amount 30 June 2006 220,800
7 Other intangible assets
Patents Brands Technical Other Total
Know-how
€ '000 € '000 € '000 € '000 € '000
Carrying amount 31 December 2005 1,347 9,599 1,099 220 12,265
Additions
Amortisation (212) (762) (59) (218) (1,251)
Net exchange difference - (63) - (2) (65)
Carrying amount 30 June 2006 1,135 8,774 1,040 - 10,949
8 Cash flow statement
The following non-cash adjustments have been made to the pre-tax result for the
period to arrive at operating cash flow:
6 months 6 months Year
ended ended ended
30.6.06 30.6.05 31.12.05
Adjustments: €'000 €'000 €'000
Depreciation, amortisation and impairment charges of fixed and
intangible assets 20,116 14,862 32,515
Employee equity-settled share options 1,532 876 2,256
Finance income (1,447) (543) (1,535)
Finance cost 6,048 5,105 11,607
(Profit)/loss on sale of tangible assets (481) (11) 1,782
Total 25,768 20,289 46,625
9 Reconciliation of net cash flow to movement in net debt
6 months 6 months Year
ended ended ended
30.6.06 30.6.05 31.12.05
€'000 €'000 €'000
(Decrease)/increase in cash and bank overdrafts (4,302) (8,033) 19,626
Decrease/(Incease) in debt, lease finance and deferred consideration 22,277 (92,356) (59,742)
Change in net debt resulting from cash flows 17,975 (100,389) (40,116)
Loans and lease finance acquired with subsidiaries (3,969) (5,103) (6,314)
Deferred consideration arising on acquisitions in the period - (11,452) (11,383)
New finance leases - (31) (45)
Translation movement (768) 104 2,472
Net movement 13,238 (116,871) (55,386)
NET DEBT AT START OF THE PERIOD (163,516) (108,130) (108,130)
NET DEBT AT END OF THE PERIOD (150,278) (225,001) (163,516)
10 Board approval
The Interim Report was approved by the Board of Directors of Kingspan Group plc
on 4th. September 2006.
Independent review report to Kingspan Group plc
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 June 2006 which comprises the consolidated income
statement, statement of recognised income and expense, consolidated balance
sheet information as at 30 June 2006, consolidated cash flow statement and
associated notes and basis of preparation. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Irish Stock Exchange. Our review has been undertaken so that we
might state to the Company those matters we are required to state to it in this
report and for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the Company for our
review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Irish Stock Exchange which require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in Ireland and the United
Kingdom. A review consists principally of making enquiries of group and local
management and applying analytical procedures to the financial information and
underlying financial data and, based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit performed in accordance with International Statements on
Auditing (Ireland and the United Kingdom) and therefore provides a lower level
of assurance than an audit. Accordingly, we do not express an audit opinion on
the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.
Grant Thornton 24 - 26 City Quay
Chartered Accountants & Dublin 2
Registered Auditors
4 September 2006
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 5th July 2024
COMPANIES COVERED:
Latest directors dealings
- 9 hours ago UIL Limited (DI)
- 9 hours ago UIL Limited (DI)
- 9 hours ago UIL Limited (DI)
- 9 hours ago UIL Limited (DI)
- 9 hours ago Schroder UK Mid Cap Fund