‘Sensible’ Brexit could spark UK building rush – Kingspan boss
AN orderly Brexit could unleash pent-up projects across the UK’s construction sector, according to Kingspan CEO Gene Murtagh.
“There’s no question about that,” he told the Irish Independent. “I think that every job that’s been postponed at the moment has only been postponed because of the lack of clarity.
“If the outcome is a sensibly negotiated solution, there’s pent-up requirement for building that for sure is going to get kick-started. But that clearly depends on it being a sensible exit,” he added.
The UK is due to leave the European Union at the end of March. Mr Murtagh said that the number of UK office-starts will tumble 10pc this year and by a deeper level in 2020, but that the decline is cyclical rather than Brexit-related. He added that Kingspan has continued to benefit from warehouse demand driven in part by the growth of online retailing.
Kingspan yesterday reported record revenues of almost €4.4bn for 2018, which was 19pc higher than in 2017 on a reported basis. On an underlying basis it was up 5pc. The company’s trading profit was up 18pc on a reported basis at €445.2m, and was 7pc higher on an underlying basis. Its earnings before interest, tax, depreciation and amortisation exceeded €500m for the first time. It was boosted by a strong performance in North America and good growth in mainland Europe. Mr Murtagh said Kingspan’s performance in Ireland is robust. “We’re seeing plenty of demand for product, both in residential and non-residential,” he said. “The non-res side has been the bigger part for us and that remains very strong.”