New building regulations set to come into force in April fuelled hopes for another positive year at construction supplies group Kingspan yesterday.

With the UK government raising the benchmark on heat retention in new houses, Kingspan said the impact on its insulation operations, combined with other initiatives, meant it had the "platform for growth in 2006".

The optimism came despite a forecast from the Dublin-based group that it expected weaker conditions in the UK construction sector this year.

In a statement, Kingspan said it had performed in line with expectations in 2005 with the strong revenues growth of the first half continuing in the second.

It predicted that operating profits would be significantly ahead of last year when annual results are announced on March 6.

Kingspan, which employs 2,500 people in the UK and Ireland, said it hoped for an increased position in the UK residential sector after an acquisition spree that included the purchase of a Warrington-based panel maker for £20m.

As well as several manufacturing sites in the UK, Kingspan has sales and industrial-based operations across Europe and the United States.