The company focused on conserving cash during the period when its end markets were rocked by foreclosure restrictions across the world
(), the building insulation specialist, has chosen not to restore dividend payments while the outlook for its markets remains very uncertain.
The first half of 2020 saw revenue fall 8% to 2.07 billion euros from 2.24 billion euros the previous year – the drop would have been 13% without the contribution of recently acquired companies – with the coronavirus pandemic largely responsible for the fall, although Kingspan admitted that sales activity was “relatively weak” before much of the world went into lockdown mode.
The company reported that pre-tax profit fell to 177.5 million euros, from 208.9 million euros in the first half of last year.
The group’s debt position improved compared to the previous year, with net debt at the end of June at â¬ 437.9 million, against â¬ 734.3 million. Free cash flow improved significantly to 260.4 million euros compared to 80.6 million euros the previous year.
âPerformance varied considerably from region to region depending on the severity and duration of government restrictions, and was aided by our early introduction of cost containment measures,â said Gene Murtagh, Managing Director from Kingspan, in the earnings release.
âWe have decided that it is prudent not to pay an interim dividend and our return to shareholders policy is under review. We expect the economic environment to remain weak and business confidence in their investment decisions to be reduced. On a more positive note, policymakers are more concerned with ensuring that buildings are more energy efficient, which is a favorable long-term trend, âhe added.