Kingspan FY21 Profit Climbs, Proposes Dividend; To Buy Ondura For €550 Mln

Kingspan Group Plc (KGP.L, KGSPY), an Irish building materials company, reported Friday that its fiscal 2021 profit climbed 48 percent to 571 million euros from last year’s 385 million euros.

Earnings per share grew to 305.6 cents from 206.2 cents last year.

Trading profit increased 49 percent from last year to 755 million euros, and EBITDA climbed 42 percent to 893 million euros.

Revenue went up 42 percent to 6.50 billion euros from 4.58 billion euros last year.

Further, the company announced a final dividend per share of 26.0 cent giving a total dividend for the year of 45.9 cent.

Looking ahead, Kingspan said, “2022 has started well helped by the strong order backlog at the end of last year, although it is still early days. … Our trading outlook beyond the first quarter is less visible although the prevailing mood in our end markets, for the most part, remains one of cautious optimism.”

Separately, Kingspan announced that it signed an exclusive put option agreement to acquire Ondura Group from Naxicap Capital Partners and others for 550 million euros, payable in cash on completion.

The deal is subject to standard French employee procedure and the customary regulatory clearances, and is expected to complete in the second half of 2022.

The acquisition of Ondura is expected to increase Kingspan Group EBITDA by approximately 7 percent on a full year basis.

France- based Ondura, comprising Onduline SAS, Alwitra Holding, CB SA and their subsidiaries, is a provider of roofing membranes and associated roofing solutions. It has 14 manufacturing sites and a distribution network in 100 countries.

In 2021, Ondura had un-audited consolidated revenues of 424 million euros with EBITDA of 63 million euros, and trading profit of 55 million euros.

Following the acquisition, the existing Ondura management teams will be retained in the businesses.

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