Superglass trims losses despite slide in sales

Insulation maker Superglass today insisted its prospects were looking brighter as it reported narrower annual losses.

Stirling-based insulation maker Superglass has trimmed its annual losses

The Stirling-based firm, which has suffered from a lack of demand for government-backed energy efficiency schemes, posted an underlying pre-tax loss of £2.3 million for the year to the end of August, compared with £3.2m a year earlier.

The reduction in losses came despite revenues falling 11 per cent to £20.8m, which the company said reflected a planned reduction in exports to Eastern Europe and “a further deterioration in activity from government-sponsored schemes”.

However, volumes from UK construction markets rose 9 per cent, helped by an increase in new house building, and Superglass said it was planning to raise prices in February, having pushed through a “substantial” increase in UK selling prices in March.

Following a share placing last year, Peter Gyllenhammar became the firm’s largest shareholder with a stake of more than 38 per cent, and chairman Mark Cubitt said the Swedish activist investor had given his backing to new chief executive Ken Munro “and his strong support for the strategy they are implementing to reposition Superglass”.

Cubitt, who has taken on the role of chairman following the departure of John Colley in June, added: “We have a new management team in place, the public endorsement of our largest shareholder, an increased focus on innovation and new product development, a number of new products recently launched, further cost savings still to be delivered and additional selling price increases announced for early 2016.

“As a result, the group is in a stronger position to make real progress in the months ahead than has been the case for many years.”