Kingspan sees Brexit as low risk to supplies

Kingspan CEO Gene Murtagh said he anticipates relatively little disruption to its business even if Brexit goes ahead on October 31, with alternatives available in any cases where access to materials does become harder.

The Irish construction materials group’s own supply chain is largely self contained within markets, he said.

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The more worrying impact of Brexit for Kingspan is likely to be on activity levels in the UK economy which could be hit, Mr Murtagh warned.

In the meantime, he said, the shape Brexit may take is “as unclear now as it was two years ago”.

Uncertainty in the UK, weakness in sterling, and a weaker German economy are issues something the group is “monitoring closely”.

Revenue at the Cavan-headquartered insulation giant was up 12pc to €2.2bn in the six months to 30 June.

Earlier this year the group made a failed attempt to buy some or all of Belgian rival Recticel.

Kingspan remains open to acquisitions – including of Recticel – and would be “comfortable” buying in the €600m range, Mr Murtagh said.

Kingspan’s trading profit jumped 18pc year-on-year to €230.4m, according to interim results.

“We have delivered a record first half with revenue growth in all our business units and a strong trading profit performance,” Mr Murtagh said.

“We continue to expand our global production footprint with new facilities under construction in the US, Brazil and Sweden.”

Kingspan’s insulated boards and panels are benefiting from shifts, including digitalisation thanks to their use in state-of-the art and temperature controlled logistics parks linked to online sales, in data centres and in electric car and battery factories, Mr Murtagh said.

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