eirmoney | ISEQ and Company Update, 05-Mar-2010

ISEQ and Company Update, 05-Mar-2010

Posted by Senan Coleman | 05 March 2010

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Market update

ISEQ Week Open: 2875.46, Week Close: 3001.24

Kingspan

Solid performance in 2009 from the overall Group, despite hostile economic conditions.
Insulation Boards total sales volumes were down 23%, although growing sales and penetration in Western Europe.
Insulated Panel sales volumes in the UK, Ireland and Western Europe were down 33%, with particular weakness in the speculative development segment.
Insulated Panel sales volumes in North America were down 23%. Architectural façade products remained strong and the former Metecno business performed robustly in the circumstances.
Central & Eastern Europe panel volumes were also weaker, down 25%. A substantial reorganisation of this unit was implemented, and will be completed in H1 2010.
Access Floors sales volumes were down 31% globally, however, margins improved from 14% to 17.5%.
Across the Group, fixed cost reductions in the year of €50mn brings the total since peak to €66mn. This process is largely complete.
Total investment in the year was €48.1mn. The main projects were the completion of a new Kooltherm® phenolic insulation facility in the Netherlands, and the completion of a new solar thermal collector plant in Northern Ireland. The Group also entered the Australian thermal insulation market with the acquisition of AIR-CELL Innovations in December, complementing Kingspan's already growing Insulated Panel business in that region.
Excellent progress was made in debt reduction, with net debt at year-end of €164.3mn, down from €299.6mn. Operating working capital was €99mn lower than a year earlier.
Source: http://www.kingspan.ie/kingspangroup/media/releases/pr2010/2010-03-01/

AIB

Operating profit before provisions of € 2,962 million
Underlying operating profit before provisions of € 2,339 million, down 7%
Loss for the period € 2,334 million
AIB Bank ROI loss of € 3,594 million; operating profit before provisions, down 25%
Capital Markets profit of € 531 million down 7%; operating profit before provisions, up 23%
AIB Bank UK loss of £ 15 million; operating profit before provisions, up 4%
Poland profit of Pln 854 million down 8%; operating profit before provisions, up 6%
M&T US$ contribution down 56%; impairment charge of € 200 million taken against investment
Costs reduction of 15%; 8% lower excluding retirement benefits amendment
Income/cost growth rate gap +4%
Cost income ratio down to 44.8% (39.0% headline) from 46.5% in 2008
Criticised loans at 29.4% of total loans
Impaired loans at 13.5% of total loans
Provision charge of € 5.35 billion or 4.05% of average customer loans
Source: http://www.aib.ie/servlet/ContentServer?pagename=PressOffice/AIB_Press_Releas/aib_po_d_press_releases-0_08&cid=1267454395537&poSection=HO&poSubSection=%20&position=first&rank=top

CRH

EBITDA for 2009 was €1,803 million, in line with the guidance provided in the Trading Update Statement of 5th January 2010, representing a decline of 32% compared with €2,665 million in 2008. EBITDA is stated after charging costs associated with the Group’s restructuring efforts of €205 million (2008: €62 million).
Depreciation and amortisation costs amounted to €848 million (2008: €824 million) and include impairment charges of €41 million (2008: €14 million).
Operating profit fell 48% to €955 million (2008: €1,841 million) after restructuring and impairment charges of €246 million (2008: €76 million). Excluding these charges, operating profit fell 37%.
Profit before tax and impairment charges of €773 million was 53% below 2008 but ahead of the guidance of €750 million provided in the January 2010 Trading Update. After impairment charges of €41 million (2008: €14 million), profit before tax of €732m showed a decline of 55% on 2008.
Earnings per share fell 58% to 88.3c (2008: 210.2c adjusted for the March 2009 Rights Issue).
Dividend per share of 62.5c showed a slight increase on the Rights-adjusted 2008 dividend of 62.2c. 2009 represents CRH’s 26th consecutive year of dividend growth.
Significant working capital reduction together with capital expenditure restraint contributed to operating cash flow of €1.2 billion, double the 2008 level of €0.6 billion.
Net debt reduced to €3.7 billion (2008: €6.1 billion) reflecting strong operating cash flow and proceeds from the March 2009 Rights Issue which raised just over €1.2 billion net of expenses.
With year-end net debt to EBITDA of 2.1 times and 2009 EBITDA/net interest of 6.1 times, CRH has one of the most flexible balance sheets in its sector.
Source: http://www.crh.ie/crhcorp/media/press/2010/2010-03-02/

Blackrock International Land

Very limited investment activity was undertaken during the year and management has concentrated on maintaining and increasing rental income, reducing costs and adding value wherever possible.
At the beginning of the year, the group’s 105 acre land holding at Broxburn, west of Edinburgh, was re-designated as part of the local core development area for mixed use, primarily residential. An outline masterplan application is in the process of preparation.
Also in Scotland, following the receivership in May of Applecross Properties Limited, the promoters and managers of the projects, the developments at Queen Margaret Drive in Glasgow and Jewel and Esk College in Eskbank, near Edinburgh, were placed in administration and the proposed re-development of the Edinburgh Fruit Market was put on hold. Full provision had been made against the group’s investments in these projects at 31 December 2008 and no further financial consequences have arisen as a result. Since the year end, Blackrock has acquired Applecross’s 50% interest in the Drum Estate from the administrator for a nominal consideration.
A planning application is also being prepared for submission to the local council for a phased mixed use/residential re-development of the group’s 15 acre land holding in the Thames Gateway, London. Since the year end, the tenant in the warehouse premises at this site has served notice to vacate with effect from April this year which will result in a loss of rental income of c. €300,000 per annum. In the meantime a scheme of refurbishment is planned and a new occupier is actively being sought for the building.
The joint venture development of the first phase of Navan Retail Park, an investment which is being led by Lagan Developments Limited, completed in spring 2009. The anchor tenant opened for trading in late autumn. A number of other tenants are in occupation and discussions are in train with several additional interested parties.
Regarding the group’s interest in a 247 acre land holding outside Dublin, proposals have been submitted to the local Council seeking a re-designation. These are currently under consideration by the relevant authorities.
In the Netherlands, new lettings were achieved at Amersfoort and Vida and active asset management is ongoing. Overall, the Dutch portfolio is performing well, with an 8% increase in annual income achieved since acquisition.
In Belgium, there was also good progress on lettings and the warehouse / office portfolio at Zaventhem, beside Brussels airport, is now 94% let.
Overall, Blackrock continues to benefit from a robust rental income stream. No defaults arose among lessees during the year and there are no significant lease expiries until 2011.
Source: http://www.bilplc.com/pdf/Preliminary_Results_2009.pdf

Grafton Group

Extensive measures taken to reduce Group’s cost base by an annualised €85m
Working capital management and tight capex boosts free cash flow to €171m
Debt to equity ratio reduced to 35 per cent
Net debt reduced by €113m to €322m
Freely available cash deposits of €302m at year end
Emerging from the downturn with a well protected balance sheet
Interim dividend of 2.5 cent payable on 31 March 2010
Sharp fall in market demand leads to decline in sales
Satisfactory market share performance
Benefits derived from lower cost base, integration, scale related and procurement efficiencies
Trading stabilises in second half
Trading outlook beginning to improve following period of significant uncertainty
UK accounts for 68 per cent of total sales
Source: http://investor.graftonplc.com/grf/media/press/2010/2010-03-04/

Fyffes

Group Revenue amounted to €598.1m in 2009, 1.4% lower than the previous year. Banana volumes were 2.3% lower in 2009 and, while average selling prices were higher, the impact of this on sales was diluted by less favourable exchange rates on translation of UK revenues. In addition, volumes and prices were lower in the pineapple category. The cessation of activities by Nolem, the Group’s former Brazilian melon joint venture, contributed to the reduction in Total Revenue, including the Group’s share of its joint ventures, from €758.2m in the previous year to €726.8m in 2009.
Adjusted EBITA for 2009 amounted to €20.7m, an increase of 35.7% or €5.5m on the previous year.
Source: http://ww7.investorrelations.co.uk/fyffes/finreports/Prelims2009050310FIN.pdf

Kenmare Resources