Superglass struggles with insulation sales

Shares in Scottish insulation supplier Superglass Holdings fell 23% after the company issued its second profits warning in four months.

Superglass struggles with insulation sales

The Stirling-based company said directors expected Superglass would barely break even in the current year after suffering disappointing sales and a surge in energy costs.

An interim management statement covering trading since February 28, said Superglass is still waiting to see the boost to demand that the UK Government’s carbon emissions reduction scheme (CERT) was supposed to provide. The CERT scheme requires utilities to help reduce emissions from housing. This can include helping consumers to fit insulation in their homes. It was extended by the Tory-LibDem Government by 21 months to December 2012.

“The company’s assessment of the wider market suggests that there is a significant and continuing shortfall in CERT-related installations,” Superglass told investors.

In March, Superglass highlighted the problems caused by a slower than expected increase in sales attributable to the CERT extension during a period of intense competition.

The company said then that the outcome for the year to August was “likely to fall substantially short of current market forecasts”.

In January, Superglass said that the company’s trading performance would be significantly weighted towards the second-half of the year. However, there has also been problems from the rising cost of energy.

In the year to August 31 2010 Superglass achieved PBTA of £3.7m before a £4.4m amortisation charge. It will record a similar charge this year, after which the intangible goodwill concerned will be fully amortised. Shares closed down 4.25p at 14.25p.

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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