SPGH.L Regulatory News (SPGH)

Superglass Holdings PLC ("Superglass" or "the Company")

Trading in line with expectations at the half year

Superglass Holdings PLC, the UK's leading independent manufacturer of glass wool and mineral fibre insulation solutions, today releases a period-end trading update for the six months ended 29 February 2016.

Highlights

· Expected unaudited EBITDA loss of approximately £0.5m in H1, a £1.4m improvement on prior year

· Sales volumes reduced by 2% and average selling prices increased by 4% year-on-year, reflecting a planned transition in business and product mix

· Several new customer wins in the contract and merchant sectors

· Production costs per tonne reduced by 9% and distribution costs per tonne reduced by 22% as compared with prior year

· Gross cash at the interim period end of £2.4m, providing adequate cash headroom

· Jan Holmstrom appointed to the Board as the representative of Peter Gyllenhammar AB, the Group's largest shareholder

Trading Update

The ongoing turnaround plan remains on track, with the delivery of planned cost savings and the continued repositioning of the business towards growing construction markets and higher value added products now yielding the positive margin improvements targeted.

As a result, Superglass expects to post an unaudited EBITDA loss of approximately £0.5m in H1, a £1.4m improvement on the prior year. Other than to re-balance inventory levels in September 2015 and in the traditionally short trading month of December, the Group has been trading at break even or positive EBITDA on a monthly basis.

As expected, the reduction in capacity has driven an increase in selling prices, with average prices in the six months 4% ahead of the same period last year. Following the implementation of the managed capacity plan, sales volume has reduced by 2% year on year, with lower margin business being replaced by new higher margin business offering a richer mix of products and greater growth opportunities. A further price increase has been implemented by all UK glass wool manufacturers from 1 February 2016, although it will take some time to confirm the extent to which this increase will hold in a market which, to a degree, remains highly price competitive.

The Group's recently launched blowing wool solution for new build housing, Superwhite 34, has gained traction in the market, with a number of national and regional contractors now stocking and installing this British Board of Agrément certified product. The Group has also established new trading relationships with several substantial customers, as a consequence of the broader range of solutions the Group is now able to supply.

The cost savings anticipated following the closure of one of the Group's furnaces were exceeded and a number of additional cost saving initiatives have been implemented in relation to raw materials, energy consumption and logistics. As a result of the above, combined with favourable energy pricing, the average production cost per tonne has reduced by 9% as compared with the first half of 2014/15. Distribution costs per tonne have fallen by 22% following a strategic review of the outbound logistics operation.

As previously outlined, the Group continues to work closely with its waste glass supplier to implement a long-term solution to provide a reliable supply of cullet of the desired quality specification. Stability and consistency of supply have been maintained and the Board remains confident that a sustainable improvement in cullet quality will be achieved.

Jan Holmstrom joined the Board on 1 February 2016 as the representative of Peter Gyllenhammar AB, thereby strengthening the links between the Group and its largest shareholder.

The Group remains on track to deliver positive EBITDA for the current financial year as a whole, in line with management's expectation (2015: loss before interest, tax, depreciation and exceptional items of £2.3m) and continues to trade with adequate cash headroom.

For further information, please contact:

Superglass Holdings PLC

Ken Munro, Chief Executive Officer 01786 451170

Chris Lea, Finance Director

N+1 Singer

Sandy Fraser 020 7496 3000

Nick Owen

Charlotte Street Partners

Robert Ballantyne or David Gaffney 0131 516 5310