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1 Mar 2011 07:00
For immediate Release | 1 March 2011 |
Superglass Holdings PLC
("Superglass" or the "Group")
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 28 February 2011, scheduled for release on 28 April 2011.
I am pleased to report that the demand drivers from the CERT extension are at long last showing signs of improvement. Growth has, however, been much stronger in loft insulation than in cavity wall insulation during the first half of the financial year.
Despite these positive signs, the Group's performance in the first half has been impacted by a slower than expected increase in sales attributable to the CERT extension, the very poor weather in December and aggressive competition since the turn of the year.
Sales into distributor and builders merchant channels which are not CERT dependent have continued to improve, as a consequence of new initiatives started during 2010. However, these initiatives are not sufficient to offset the pressures in our principal market.
We announced in November and reconfirmed in January the Board's expectation that the result for the current financial year would be significantly second half weighted. Given the difficult first half experienced as a result of the factors outlined above, we now expect to record a modest profit at the PBTA level in the first six months. Whilst, the outlook for the second half is stronger, any improvement will not be sufficient to compensate for the first half shortfall and, therefore, the outcome for the financial year as a whole is likely to fall substantially short of current market forecasts.
It is frustrating to report a continuing shortfall in performance. However, the Government requires both that the CERT extension targets are met by the end of 2012 and that 68% of all measures are derived from insulation. The Board remains confident that the right actions are being taken to position Superglass to benefit from the improvement in market conditions which will ultimately flow from the CERT extension.
ENDS
For further information, please contact:
Superglass Holdings PLC | |
Alex McLeod, Chief Executive Officer Tony Kirkbright, Chief Finance Officer
| 01786 451 170
|
Buchanan Communications | |
Diane Stewart, Tim Anderson, Carrie Clement
| 0207 466 5000 / 0131 226 6150 |
Brewin Dolphin Limited | |
Sandy Fraser | 0131 225 2566 |
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