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Constant Buying!
In today at 5.91p...something is cooking imo...
6mill trade.....galloping through...
Superglass continues to manage its working capital effectively and, despite the challenging market conditions, the net debt position has remained consistently ahead of forecast in recent months. Looking forward there are as yet no signs of any sustained improvement in the market and there continues to be great uncertainty over the transition from CERT to Green Deal when the former expires at the end of 2012. The impact of Green Deal and its effect on Superglass' business remains difficult to predict at this time and accordingly the range of possible outcomes for the Company is wide. The UK Government's own economic assessment suggests that the volume of insulation sales under Green Deal will be lower in 2013 than in 2012 under CERT which must be contrary to the desired outcome. The Board of Superglass continues to make representations to the UK Government to encourage initiatives to ensure an effective transition from CERT to Green Deal. The retrofitting of glasswool loft and cavity wall solutions are two of the most cost effective methods of reducing carbon emissions and, in the opinion of the Board of Superglass, ought to be a priority for continuing UK Government action. The strategic objective remains to migrate Superglass into a lower cost, higher quality producer of glass fibre insulation solutions with an emphasis on selling its products into the construction sector. Strengthening of the executive management team is critical to achieving this objective. We are pleased to announce the appointment of Allan Clow as Finance Director and Company Secretary of Superglass with effect from 28 August 2012. Allan was previously Finance Director of the Interiors Division of Havelock Europa PLC, which has turnover of circa £100m and has circa 700 employees. He is a Member of the Chartered Institute of Management Accountants and previously worked at Babcock Rosyth Defence Ltd, AG Barr PLC and Hughes Microelectronics Europa Ltd. There is no further disclosure required to be made regarding Allan Clow under Listing Rule 9.6.13R. Superglass is also investing in its sales function and has appointed an interim Sales and Marketing Director with extensive relevant sector experience.
Trading update and appointment of Finance Director and Company Secretary Superglass, the UK's leading independent manufacturer of glass fibre insulation solutions, today issues a trading update. This statement also comprises the Interim Management Statement for the period from 29 February 2012 to date. Market conditions in the UK are extremely challenging and difficult to predict, as reported in the interim results announced on 24 April 2012. Trading in the period since then has been disappointing and demand in the market is subdued. In particular sales through CERT (Carbon Emission Reduction Target) related activity have been disappointing, confounding industry expectations after the improvement seen in the early part of 2012. In addition activity levels in the construction sector have, as has been reported in the national press, been adversely affected by the poor weather and the unusually large number of bank holidays. Net sales in the second half of the current financial year are lower than we anticipated at the time of the announcement of the interim results and will be below the level reported for the first half, with average daily sales tonnages having declined since the relatively strong performance in March. This decline, which is due primarily to the reduction in CERT related sales, has been partly offset by an improvement in the average selling price per tonne. The Company's financial performance has also been adversely affected by a short-term increase in overhead costs incurred as a result of the turnaround process. The Board now expects that the Company's performance in the second half will be below that in the first half, as Superglass continues its turnaround and implements its cost reduction programme. Superglass is aggressively attacking its cost base. The cost reduction programme remains focused on Project Phoenix, the capital investment programme that was central to the refinancing completed on 5 December 2011. The Board is pleased to report that the project is proceeding well and contracts have now been entered into in respect of 64% of the overall project. Superglass has identified potential enhancements to Project Phoenix which, when combined with other cost saving actions to be taken, should when implemented reduce the cost base by up to £5m for a full financial year bringing the Company's previously high cost base in line with what is believed to be the industry norm. As previously stated the cost savings are expected to start to impact meaningfully in the year ending 31 August 2013. Superglass aims to be the lowest cost producer in the UK market.
http://www.investegate.co.uk/Article.aspx?id=201207200700051041I
In other words, things are not getting noticeably better. In fact, sales volumes "are not likely to be as strong as originally anticipated." John Colley, Superglass's Chairman says the company is "making progress in its turnaround." Investors do not agree. The stock has dropped 9% in morning trading, 96% in the last 12 months. Unless the new manufacturing plant delivers for Superglass, and crucially, gets built on time, then the firm's future looks deeply uncertain.
Part of the money raised will be spent on a new manufacturing plant, nicknamed Project Phoenix, but this is only described as proceeding "broadly" in line with the plan of completion by 2013. The company has also revised its guidance for the full year; originally it had hoped earnings would pick up in the second half as uncertainty about its future was removed. It now appears to be backtracking, saying "the board's view is that trading will continue at or around the current run rate for the second half of the year."
The struggling glass fibre insulation firm, Superglass, has dropped sharply after reporting increased losses and tough market conditions. In the six months to the end of February revenue increased by 14% to £17.2m compared to the same period of 2011 but losses before tax increased to £0.8m, from flat earnings in the prior year. Superglass blames exceptional costs arising from the refinancing last year and tough market conditions. The firm was forced to launch a £20m fund-raising in December, financed through issuing new shares and by turning debt into equity.
N + 1 Brewin downgrades Superglass Holdings from buy to hold, target price cut from 38p to 20p.
The Group's net debt position is better than projected at the time of the recapitalisation , largely as a result of tight controls on working capital. Our major capital investment programme, Project Phoenix, is progressing to schedule and within budget. The planning phase was completed in December and negotiations are ongoing with key suppliers. Implementation of key projects is expected to commence as planned during April . We are still at an early stage in implementing the recovery plan and Superglass continues to operate against a background of challenging market conditions, exacerbated by recent uncertainty over the potential impact of the transition from CERT to Green Deal. It is too early at this stage to assess what might be the real impact of this transition when it takes effect at the beginning of 2013. Overall, the Board views the progress achieved during the three months since the recapitalisation as satisfactory.
Period end trading update Superglass Holdings PLC, the UK's leading independent manufacturer of glass wool mineral fibre insulation products, today releases a period end trading update in advance of its interim results for the six month period ended 29 February 2012, scheduled for release towards the end of April. Sales in the first half of the current financial year are significantly ahead of the equivalent period last year, albeit behind the budgeted level. Inevitably, the widely-known financial difficulties experienced by Superglass prior to the successful recapitalisation at the end of 2011 have impacted adversely on trading during the first half of the financial year; and it is taking time to rebuild confidence amongst our customer base and channel partners. The resulting shortfall in sales has, however, been partially mitigated by lower costs. The drivers of activity in CERT are continuing to strengthen, resulting in strong growth in this channel over the past eight weeks. There is now clear evidence that energy suppliers have increased their efforts to achieve the mandatory CERT targets by the end of 2012. Sales pricing levels in the UK have also improved following the general market increase in October and a further increase in February should address some of the significant cost inflation which has impacted Superglass over the past 18 months. With increased volumes from CERT, increased selling prices and the benefits of sales specification activity beginning to take effect, results for 2011/12 will, as expected, be strongly second half weighted.
http://www.investegate.co.uk/Article.aspx?id=201203010700264231Y
nterim Management Statement Superglass Holdings PLC, the UK's leading independent manufacturer of glass mineral fibre insulation products will hold its Annual General Meeting at 10.00am today at which the following statement will be made by Tim Ross, Chairman of Superglass. This comprises the Group's Interim Management Statement for the period from 1 September 2011 to 16 January 2012. "Trading in the year to date is in line with management expectations. Results in the early part of the financial year were impacted by the uncertainty surrounding the Group's financial position but, following the successful completion of the recapitalisation on 2 December 2011, the Company now has the balance sheet strength to implement its restructuring and strategic development plans. There were encouraging signs of improvement in CERT activity towards the end of the first quarter, and recent, more attractive offers from energy suppliers to stimulate demand are welcome. However, we remain cautious about this market channel and continue to work on broadening our routes to market. In new build construction our sales have grown significantly in the last two years. Activity in this segment slowed in the first quarter and our aspiration for the year is to consolidate historic gains. Input cost pressures continue with energy costs rising significantly during the period. We will have a clearer picture on trends in sales pricing when we report our interim results. Early progress on our investment programme is in line with the project brief, with the planning stages already substantially completed. Completion of the full programme is scheduled for March 2013 and will deliver operating cost savings of up to £3.6m which will start to impact meaningfully in the 2012/13 financial year. Now that the Company's financial position has been secured, and having served as chairman since IPO in 2007, I intend to step aside as soon as a new chairman has been identified. I anticipate that the Board will be in a position to announce my successor in the next few weeks. "
http://www.investegate.co.uk/Article.aspx?id=201201160700315814V
Brewin Dolphin recommenced coverage of Superglass (SPGH) with a "buy" recommendation and 38p target price. The mineral wool insulation company significantly strengthened its balance sheet and has no covenants for two years, which the broker believes will protect it against future trading. Brewin notes the raising of 8 million pounds and conversion of 12.2 million pounds of bank debt into convertible shares, which should leave net debt at the end of 2012 at around 4.7 million pounds, compared to 17 million at the end of last year.
in actual fact, the price has gone down !?
These shares have undergone a 20:1 consolidation. The company recently raised capital via a placing which involved c89% dilution for existing holders - in short, Superglass has been a car crash. Details http://investegate.co.uk/Article.aspx?id=201111071829116497R Scroll down to the Introduction section for the explanation.
I dont see how this can be right... I thought shareprices went up because of the demand... but buying 115 shares after selling twice as many doesn't make a shareprice go up 2000% does it?!
Just noticed this on the breakout boards, wonder if anybody had this
rise :o who was in on this?
Could this be a Dead Cat Bounce? However, real spread is over 60% So who would take a punt on this? I'd need a 100% rise just to make it worthwhile! I amm out.....
wait
this share might go under 1p the way its falling
Superglass in capital restructuring talks 05/09/2011 Ben Jaglom Glass fibre insulation manufacturer Superglass Holdings (SPGH) has warned that it will need a capital restructuring. In a trading update for the year to August, the fully-listed notes that 'product mix, market weakness and cost pressures' have affected margins and that as a result profits for 2010-11 will emerge 'slightly reduced' from an earlier update in June. Year end net debt stood at £17.7 million. On its banking covenants Superglass says it is in 'constructive discussions' with its banker Clydesdale Bank and that as a result it has deferred until 31 October the capital repayment due on 31 August . The company indicates there has also been a waiver of the requirement to test to financial covenants due on 31 August 2011. Superglass declares it has 'been pursuing the options for a capital restructuring' and has reached agreement on terms for addressing the debt part of the restructuring. This will include converting a proportion of its debt into convertible shares, with the restructuring likely to involve a 'substantial equity issue'. This April Growth Company Investor recommended avoiding the shares at 17.75p and they have lost 65 per cent since, currently trading at 7p. With further woes caused by its financial difficulties a distinct possibility we see little reason to invest at the current price. We therefore reiterate our avoid rating.