Superglass, the Stirling-based insulation maker, today said the first phase its cost-saving programme remains on track for completion during the first half of this year, but tough market conditions have hit its average sales price.
The firm, which is investing £6.5 million in new technology to make its products more profitable, said a newly-installed production line was now running at full capacity, with a second line scheduled to be upgraded this spring.
In a statement ahead of the company’s annual meeting, chairman John Colley said: “Market conditions in the UK are extremely challenging and remain difficult to predict.”
He said that sales volumes had “been steady” since Superglass reported its annual results in November, which showed a 75 per cent plunge in profits to £400,000.
“However, a stronger-than-anticipated demand for volume commodity products has had a negative impact on our average sales price and overall market conditions are also impacting prices.”
Colley added: “The board remains focused and is making good progress in meeting its strategic objectives of migrating Superglass into a lower-cost, higher-quality producer of glass fibre insulation solutions with an emphasis on selling its products through broader routes to market, an enlarged customer base and a more comprehensive range.”