Building group Kingspan has announced strong profits for the first 11 months of 2007, but added that a slowdown in profit growth in 2008 is expected.

The predicted slowdown is due to "more challenging" markets in Ireland, the UK and western Europe, said the Cavan-based company.

For the full year 2007, the group anticipates growth in operating profits of approximately 22% over the €194m achieved in 2006. However, Kingspan only expects "mid-single digit growth in earnings," in 2008.

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The company has fallen 33% on the Dublin stock exchange this year as Ireland's housing market slows and on concern that demand for its products may cool.

In the UK, which accounts for around 60 per cent of its sales, potential home seekers are being discouraged by the worst performance in property values since 1995.

Kingspan said that its insulated panels division continued to perform well in the second half of the year, with non-residential activity levels remaining high in all markets. However it added that momentum has 'tempered' slightly towards the end of the year.

(NS/SP)