Stirling based firm says demand has been subdued and reveals new finance director.
Glass wool insulation maker Superglass is reporting that trading is disappointing and demand in the market is subdued due to extremely challenging market conditions. But the business has strengthened its management team with the appointment of Allan Clow as its new finance director and company secretary. He moves from Havelock Europa.
In a trading update, it said that in the period since it reported interim results in April, sales through the Carbon Emission Reduction Target (CERT) scheme have been disappointing, confounding industry expectations after the improvement seen in the early part of 2012.
The firm said that in addition activity levels in the construction sector have been adversely affected by the poor weather and the unusually large number of bank holidays.
In the statement Superglass said: 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.
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 said it continues to aggressively attack 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 company 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 s5m for a full financial year.
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.