Insulation maker Superglass returns to profit as sales soar

Glass wool insulation maker Superglass has returned to the black as sales soared at the Stirling-based firm, which is currently undergoing a £37 million redevelopment.

Theresa McLean, chief financial officer at Technonicol UK and Ireland. The Technonicol group acquired Superglass in 2016. Picture: Chris Watt

The manufacturer has returned to trading profit for the first time since 2011, delivering profits before tax and exceptional items of £564,000 in the year to the end of December.

This contrasts with a pre-tax loss of £1.7m in 2017 and marks the end of a checkered spell for Superglass, which left London’s junior Alternative Investment Market (Aim) in 2016 after a turbulent nine years during which it lost more than 90 per cent of its value.

Full-year revenues jumped 39 per cent to £32.9m on the back of increased sales volume, hikes in the average selling price, and operational cost efficiencies.

Net profits came in at £1m, representing a drop from £10m in 2017 when the firm gained £13.1m in exceptional items after writing off intercompany loans as part of a restructure.

The results come as the company undergoes a £37m redevelopment at its Thistle Industrial Estate facility in Stirling.

Set to complete this summer, the revamp is expected to double annual production capacity to 60,000 tonnes. Upgrades include installing an automatic packing system and replacing a 187-tonne furnace, curing ovens, and cooling, cutting and milling equipment.

The company said its return to profit marks a “step-change” in future trading. It had previously suffered amid a lack of demand for government-backed energy efficiency schemes, intended to boost sales to homeowners.

The Scottish company was removed from Aim following an £8.7m buy-out by Russian roofing and insulation group Technonicol.

It is now the site of the regional headquarters for Technonicol’s western European and North American businesses.

Theresa McLean, chief financial officer for Technonicol UK and Ireland, said: “The latest results provide a springboard for a positive step-change in trading results in the years ahead.

“Demand for glass wool insulation continues to be very strong both domestically and in export markets, and with the major manufacturing investment we’re making in the Stirling site, Superglass is set to double its production output capabilities and capitalise on the opportunity.

“Despite political uncertainty, the appetite for the premium insulation solutions that we offer is expected to continue. We have solid foundations from which to continue to build the successful Superglass brand for years to come.”

Superglass was set up in 1987 and floated on Aim in 2007, valued at the time at more than £100m.