SUPERGLASS Holdings, the Scottish insulation maker cut losses by £0.4 million in the first half when the company said sales were boosted by increased housebuilding activity.
However, the Stirling-based company recorded a £1.1m fall in total revenues amid continued weak sales under a government scheme that was meant to provide a big boost to demand for insulation.
The company, which employs around 160 people in Stirling, said demand under the Green Deal and ECO schemes is currently operating at negligible levels.
Superglass said first half sales were also impacted by uncertainty related to the refinancing it completed in October and its decision to reduce exports to Eastern Europe to focus on more profitable domestic sales.
The shift in strategy forms part of an ongoing turnround plan, which executive chairman John Colley said remained broadly on track.
He said the Aim-listed firm should feel the benefit in the second half of the decision to focus on growing construction markets, rather than on selling insulation for retrofitting in existing properties.
The company's decision to impose a price increase in March reflected confidence in the prospects for sectors such as housebuilding. The increase is expected to boost second half revenues.
The company also expects to achieve further cost savings, partly driven by investment in increasing the efficiency of its manufacturing plant.
Mr Colley said the company's focus on key sales partners and careful cost control helped it cut losses before interest, tax, depreciation, amortisation and exceptional items, to £3.1 million in the six months to February, from £3.5m in the equivalent period last year.
Turnover fell to £10.3m from £11.4m.
Earlier this month the Hamilton Portfolio private equity and investment firm co-founded by Scottish entrepreneur John Boyle took a 4.15 per cent stake in Superglass Holdings.
The move provided a vote of confidence in Superglass, which announced in March that it was parting company with chief executive Alex McLeod, and has run up heavy losses in recent years.
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