Superglass shifts to Aim after £12.2m fundraising

Insulation maker Superglass has started its new life on the junior Alternative Investment Market (Aim) after completing a make-or-break £12.2 million fundraising to cuts its debts.

The Stirling-based firm switched from a main market listing yesterday after finalising its refinancing deal, which also saw lender Clydesdale Bank convert some of its debt into equity.

Presenting its half-year results last month, the company said trading conditions were “extremely challenging” because the recent transition from one government incentive scheme to another has caused a major gap in activity for fitting loft and cavity insulation, while housebuilding activity remained “abnormally low”.

Shareholders had been warned that the firm would go into administration if it could not complete the share issue and conversion of about half of its debt into equity.

The company, which employs about 170 people at its Stirling factory, said yesterday that its core debt had been “substantially” reduced to £2.5m following the refinancing, while its cash balances stood at about £9.2m.

It added: “Superglass now has a considerably strengthened, long-term capital structure as a platform upon which to build a sustainable, strong and resilient business that is better positioned to compete more effectively in challenging markets.”