Tougher regulations and expansion into Europe lifted pre-tax profit at insulation manufacturer Kingspan to £25.4m.

This was an increase of 32.5% for the six months to 30 June 2004. Turnover was up 15.5% to £299m.

The group said that sales were being driven by changes in regulations relating to energy efficiency and fire protection. Sales of insulation products rose 26.8% and insulated panels 23.2%.

Kingspan said: “There is increasing pressure on architects and specifiers to reduce carbon dioxide emission, which can be achieved by designing energy efficient buildings. This will impact favourably on sales of Kingspan’s insulated panels and products in the UK and Ireland.”

Kingspan announced that it would be establishing a £8.15m plant in Hungary following rapid growth in in Central Europe. The group said that sales in the region accounted for 18.6% of its panel sales only six years after it moved into the region.