29th Apr 2016 09:08
LONDON (Alliance News) - Glass wool and mineral fibre insulation manufacturer Superglass Holdings PLC said Friday its pretax loss narrowed in the first half of its financial year, as the company transitioned towards higher margin business causing production costs to fall.
Superglass reported a pretax loss of GBP1.8 million for the six months ended February 29, from GBP2.8 million a year earlier, as its revenue rose to GBP10.5 million from GBP10.3 million, but cost of sales fell to GBP9.4 million from GBP10.4 million.
This came as sales volumes fell by 2.0% year-on-year for the company, but average selling price was up 4.0%, which Superglass said reflected its planned transition in business and product mix. Production costs per tonne were down 9.0% and distribution costs were down 22%, when compared to the prior half-year.
Superglass noted a price increase implemented on March 1, 2015, which it said drove up its revenue and the company said it introduced new higher-value products during the period, such as its wall insulation product Superwhite 34.
"A further price increase has been implemented by all UK glass wool manufacturers from February 1 and, although early indications are encouraging, the extent to which this increase will hold in a market which remains highly price competitive, remains to be seen," Chairman Mark Cubitt said.
"It is expected that the selling price increase seen in recent months will be sustained and planned volume growth realised, along with the delivery of incremental cost savings. The overall trading performance of the business continues to be broadly in line with management expectations, underpinning the board's confidence in a return to positive earnings before interest, tax, depreciation, amortisation and exceptional items in aggregate for the full financial year, for the first time since 2012," Cubitt added.
Shares in Superglass were up 3.1% at 3.61 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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