Kingspan Group has issued a trading update, which shows that for the most part of the first quarter, the company reflected solid activity globally both in terms of sales and order intake.
Group sales of €1.03 billion for the three-month period to March 31 were 3% behind on the previous year (-7% pre-acquisitions).
In comparison, the company says the current lockdown did not significantly impact activity for most of the first quarter, with the UK seeing a pickup in orders, and more encouraging, trends generally following a tough second half in 2019.
By market, Kingspan revealed the following:
Insulated Panels – Sales activity in the UK continued to lag in the first quarter of the year, after poor performance in the previous quarter. Global sales were down 2% in Q1.
Insulation Boards – Sales were down 8% in the first quarter, with Kooltherm sales modestly ahead offset by softer PIR activity, particularly in the UK. Activity in Ireland was well down in the early part of the year, particularly in the residential segment.
Light & Air – Sales were up 1% in the first quarter.
In the trading update, Kingspan said its global sales in April dropped by 35%, compared to the same month last year, reflecting the full or partial closure of various construction markets worldwide.
Activity in Ireland is down by over 80%, versus the previous year, whilst UK activity is less than half what it was in April last year. As a consequence, the company says it expects to record a result close to breakeven overall for April – normally a profitable month – and that this trading rate is expected to persist through the coming weeks at the least.
Kingspan has €1 billion of cash on hand and committed undrawn facilities with bank debt at the end of June to be in the region of €580 million (December 2019: €633 million).
