Superglass loss widens as revenue drops

Superglass posted a wider pre-tax loss for the year to the end of August but said the outlook for the current year was more encouraging.

The manufacturer of glass fibre insulation solutions said its pre-tax loss was £9.4m compared with £6.8m in the same period last year.

Revenue fell to £20.8m from £23.5m, reflecting a planned reduction in Eastern European exports and further deterioration in activity from government-sponsored schemes.

However, volumes from UK construction markets were up 9% thanks to an increase in new house building and the company said it was planning to raise prices in February, having pushed through a “substantial” increase in UK selling prices in March.

Chairman Mark Cubitt said: "Superglass continues to execute the strategic plan presented to shareholders in 2014 and has successfully reconfigured the manufacturing plant into a reduced capacity, more flexible and lower cost facility.

We have a new management team in place, the public endorsement of our largest shareholder, an increased focus on innovation and new product development, a number of new products recently launched, further cost savings still to be delivered and additional selling price increases announced for early 2016. As a result, the group is in a stronger position to make real progress in the months ahead than has been the case for many years."

At 1116 GMT, shares were down 5.4% at 2.36p.