Superglass warns of delayed return to profit

Insulation maker Superglass today warned investors that its return to the black would be delayed.

The Stirling-based company, which has suffered amid “negligible” demand for government-backed energy efficiency schemes, said its manufacturing costs have risen due to inconsistent supplies of crushed glass used in its products.

In a trading update, the firm also said its withdrawal from lower-margin export markets and some low-value domestic activity means sales volumes in the second half of the year will be in line with the first six months.

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As a result, Superglass said its return to positive underlying earnings, previously forecast in the second half, is expected to be delayed.

“However, the progress made in the second half will demonstrate the substantial improvement in the company’s financial performance over both the first half of the year and the equivalent period last year,” it added.

“The board is increasingly optimistic that the combination of growing construction markets, the introduction of new higher-value products, production efficiencies and tighter overall capacity supports a more positive outlook for price and margin improvement over the coming year.”

Shares in Superglass initially plunged as much as 33 per cent before recovering as the trading session went on and moving back into positive territory.