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Builders and building materials

Kingspan could nudge up full year profit guidance, reckons analyst

As Kingspan Group PLC (LSE:KGP) already pre-announced headline first-half numbers last month, next Friday's interim results will be all about the outlook and whether profit guidance has been upped.

"We don’t expect major surprises on H123 results itself," said analyst Gregor Kuglitsch at UBS, adding that the key focus is likely to be on how if at all guidance and outlook have changed.

Back in early July, the insulation and cladding specialist said half-year underlying profit (EBITA) will be around €435 million on revenues of around €4.1 billion.

Kingspan's guidance was for €870 million of full-year EBITA, but the City of London consensus is looking for much less, nearer €837 million.

But Kuglitsch said "we think there is potential for a nudge up in guidance", forecasting €877 million, himself.

The recently agreed €250mln deal for German insulation firm Steico is not expected to complete until the next financial year.

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