Alex McLeod: pleased with CERT progress.
Superglass increases sales to merchants
Published: 03 May, 2011
STIRLING: Insulation maker Superglass increased its share of the builders' merchant market from 17% to 25% in the past year and grew direct sales to housebuilders by 15.6% during the second quarter.
hief executive Alex McLeod said he is pleased with the progress being made to reduce the company's dependence on the carbon emissions reduction scheme (CERT), which requires power companies to help their customer reduce their energy usage.
CERT accounted for 60% of Superglass's sales in 2009 but has now fallen to 36%.
The slow take-up of CERT was blamed for an 11% fall in turnover during the six months to the end of February to £15m.
The firm broke even – compared with a £2.6m interim profit last year – but slumped to a £2.2m pre-tax loss following amortisation relating to a management buyout in 2005, before the firm floated.
Tony Kirkbright, chief financial officer, said there would be one final £2.2m amortisation during the second half, after which he said the bottom line would reflect the cash generation of the business.
Superglass issued a profits warning last month, highlighting the slow up-take of CERT, but the interim results matched the revised City expectations.