...Weak Business Profile: The ratings are constrained by L'isolante K-Flex S.p.A.'s (K-Flex) limited scale and operational diversification. The group operates 11 production units and reported around EUR50m of EBITDA in 2013. It is also somewhat dependent on key members of the founding family, who own, manage and support the group. Leading Niche Position: K-Flex holds a dominant market share of around 35% globally in the growing niche market for elastomeric foam (a fairly small part of the insulation market), which is estimated by the company at around EUR1bn. It shares the concentrated market with only one key global competitor. This dominance provides some barriers to entry. End-Market Diversification: Product concentration on elastomeric foam is mitigated by the range of applications and end-markets served by its products. Elastomeric insulation makes up nearly 40% of group revenue. The remainder is generated by related applications ranging from cladding and jacketing to pipe supports and...
