THE chief executive of Superglass Holdings has insisted the insulation maker has a long term future in Stirling with its new focus on the construction and housebuilding markets although the firm has recorded a big increase in losses.

Superglass, which employs 150 people in Stirling, lost £9.4 million before tax in the year to 31 August, compared with £6.8m the previous year, as Government- sponsored energy efficiency schemes failed to provide the expected spur to demand.

Mr Munro said Superglass had done a minimal amount of business related to schemes such as the Green Deal and ECO in the last two years. The Government announced in July that it would cease funding the Green Deal, which provided loans to help people fit insulation in their homes.

Superglass had long complained that take up rates for such schemes were low.

The company said an 11 per cent fall in sales in the year to August, to £20.8m, from £23.5m last time, reflected a planned reduction in lower margin Eastern European exports and a further deterioration in activity from Government-sponsored schemes.

However, Mr Munro said Superglass had been repositioned to focus on markets that offer much better prospects, including the supply of insulation for use in new homes.

“It was heavily dependent on schemes and subsidies but that is no longer the case,” said Mr Munro, who took charge in June. In March Superglass announced former chief executive Alex McLeod would resign in August "by mutual agreement".

Mr Munro added: “My emphasis now is on commercially resilient revenue streams from growth markets like house-building and construction.”

Superglass noted it achieved a nine per cent increase in sales volumes derived from UK construction markets, particularly house-building, in the year to August.

In March the company implemented its first price increase for years.

The company has established an innovation centre in Stirling where it is developing new products to sell into the construction market.

Aim-listed Superglass expects a new wool it developed for cavity wall insulation targeted at the new build housing market will provided a big boost to the company in the current year.

Mr Munro noted the company has also invested heavily in improving manufacturing efficiency in Stirling, where it makes insulation from recycled glass cullet.

Superglass mothballed the older of its two furnaces in August in a move it expects will generate substantial energy savings in the current year.

The company had previously made changes that allowed it to run two production lines from one furnace.

Mr Munro said Superglass will continue looking for ways to cut costs but he said he was comfortable with the number of employees working at the plant.

Mark Cubitt, who succeeded John Colley as chairman in June, said the combined effect of further cost savings, strengthening volumes, new products and a further price increase announced for 2016 leaves Superglass in a “stronger position to make real progress in the months ahead than has been the case for many years”.

He noted the strategy has the backing of Superglass’ largest shareholder Peter Gylenhammer, who owns 38.2 per cent of the equity.

The Swedish investor provided £3m in October last year, when the company raised £6.25m to strengthen its balance sheet.

Superglass had £1.2m cash at 31 August, net of debts.

The company said the full effect of existing cost saving initiatives has yet to be reflected in its results.

Syperglass said it suffered interruptions to production and incurred substantial additional costs after its cullet supplier, Viridor, commissioned a new glass recycling

plant at Newhouse in Lanarkshire, in January. However, Superglass added that significant progress has been made to stabilise supply of cullet.

Superglass recorded a £4.5m exceptional charge for goodwill impairment and £0.6m one off reorganisation costs in the year to August.

The loss before tax and exceptionals fell to £4.6m, from £5.5m in the preceding year.