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1 Jul 2008 07:00
Superglass Holdings PLC
17 January 2008
Interim Management Statement
Superglass Holdings PLC ("the Company" or "Superglass"), one of the UK's leading manufacturers of glass mineral fibre insulation products issues the following Interim Management Statement covering the period from the beginning of the financial year, 1 September 2007, to date.
In our preliminary results announcement for the year ended 31 August 2007, issued on 26 November 2007, we said that trading was ahead of expectations at the time of the float on a 12 month like for like basis. Today we confirm that EBITA continues to be broadly in line with expectations due to stringent cost control. However and primarily due to the delay to the expected implementation of CERT (Carbon Emission Reduction Target), turnover is currently below management expectations.
We anticipate that the new Carbon Emissions Reduction Target ("CERT") - previously known as the Energy Efficiency Commitment (EEC) - will proceed, from April 2008, at double the level of the previous targets. This means that energy suppliers will be required to save twice the level of energy savings in the residential sector as part of their regulatory obligations over the next three years. Consequently management continue to expect to see an increase in volumes in 2008 as contractors have already begun placing orders to meet their obligation under CERT. In order to ensure Superglass is well placed to deliver on the requirements under CERT, there has been a strategic build-up of finished good stocks, which will help meet demand during the early months of its implementation.
The capital investment programme is continuing as planned and it is anticipated that by the end of 2008 production capacity will have increased by 16% to 70,000 tonnes per annum. This increased capacity will be essential in ensuring that Superglass can meet the expected demand increases under CERT.
Superglass is due to hold its Annual General Meeting on 21 January 2008. Please note that there will be no further trading update made at this stage.
For further information, please contact:
Superglass Holdings PLC 01786 451 170
John Smellie, Chief Executive
Brewin Dolphin Investment Banking 0845 270 8610
Andrew Kitchingman/ Sean Wyndham-Quin
Buchanan Communications 0207 466 5000
Diane Stewart/ Tim Anderson/ Nick Melson
ENDS
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