Trading Update and Board Appointment

 Superglass Holdings plc

("Superglass" or the "Company")

Trading update and appointment of Finance Director and Company Secretary

Superglass, the UK's leading independent manufacturer of glass fibre insulation solutions, today issues a trading update. This statement also comprises the Interim Management Statement for the period from 29 February 2012 to date.

Market conditions in the UK are extremely challenging and difficult to predict, as reported in the interim results announced on 24 April 2012. Trading in the period since then has been disappointing and demand in the market is subdued. In particular sales through CERT (Carbon Emission Reduction Target) related activity have been disappointing, confounding industry expectations after the improvement seen in the early part of 2012. In addition activity levels in the construction sector have, as has been reported in the national press, been adversely affected by the poor weather and the unusually large number of bank holidays.

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, with average daily sales tonnages having declined since the relatively strong performance in March. This decline, which is due primarily to the reduction in CERT related sales, has been partly offset by an improvement in the average selling price per tonne. The Company's financial performance has also been adversely affected by a short-term increase in overhead costs incurred as a result of the turnaround process. 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 is aggressively attacking 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 Board is pleased to report that the project is proceeding well and contracts have now been entered into in respect of 64% of the overall project. Superglass 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 £5m for a full financial year bringing the Company's previously high cost base in line with what is believed to be the industry norm. As previously stated the cost savings are expected to start to impact meaningfully in the year ending 31 August 2013. Superglass aims to be the lowest cost producer in the UK market.

Superglass continues to manage its working capital effectively and, despite the challenging market conditions, the net debt position has remained consistently ahead of forecast in recent months. 

Looking forward there are as yet no signs of any sustained improvement in the market and there continues to be great uncertainty over the transition from CERT to Green Deal when the former expires at the end of 2012. The impact of Green Deal and its effect on Superglass' business remains difficult to predict at this time and accordingly the range of possible outcomes for the Company is wide. The UK Government's own economic assessment suggests that the volume of insulation sales under Green Deal will be lower in 2013 than in 2012 under CERT which must be contrary to the desired outcome. The Board of Superglass continues to make representations to the UK Government to encourage initiatives to ensure an effective transition from CERT to Green Deal. The retrofitting of glasswool loft and cavity wall solutions are two of the most cost effective methods of reducing carbon emissions and, in the opinion of the Board of Superglass, ought to be a priority for continuing UK Government action.

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.

Strengthening of the executive management team is critical to achieving this objective. We are pleased to announce the appointment of Allan Clow as Finance Director and Company Secretary of Superglass with effect from 28 August 2012. Allan was previously Finance Director of the Interiors Division of Havelock Europa PLC, which has turnover of circa £100m and has circa 700 employees. He is a Member of the Chartered Institute of Management Accountants and previously worked at Babcock Rosyth Defence Ltd, AG Barr PLC and Hughes Microelectronics Europa Ltd.

There is no further disclosure required to be made regarding Allan Clow under Listing Rule 9.6.13R.

Superglass is also investing in its sales function and has appointed an interim Sales and Marketing Director with extensive relevant sector experience.

For further information, please contact:

Forward-looking statements

This announcement includes forward-looking statements. All statements other than statements of historical fact included within this announcement including, without limitation, those regarding Superglass' financial position, business strategy, plans and objectives of management for future operations, are forward-looking statements. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'prepares', 'anticipates', 'expects', 'intends', 'may', 'will' or 'should' or, in each case, their negative or other variations or comparable terminology. Investors should specifically consider the factors identified within this announcement which could cause actual results to differ before making an investment decision. Such forward-looking statements include known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based upon numerous assumptions as to Superglass' present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date at which they are made. Save as required by the Takeover Panel, the FSA, The London Stock Exchange or applicable law, including, without limitation, the City Code, the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules, Superglass expressly disclaims any responsibility to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.