DAVY VIEW

As anticipated, the effects of COVID-19 disrupted Kingspan’s momentum and resulted in the first decline in the group’s half-yearly profits in a decade. However, the H1 2020 result was easily better than what we expected; on first look, we expect to upgrade our full year trading profit from €365m towards €450m. The results and commentary support our conviction that Kingspan will emerge post-pandemic an even stronger business. The other stand-out in the results was that net debt was significantly lower than previously guided. Moreover, Kingspan remains committed to expansion and confirmed two new bolt-on deals for the Insulated Panels division. Smart M&A has been a feature of Kingspan and hence an increase in activity should be welcomed.