LOSS-making Scottish insulation manufacturer Superglass has announced that chief executive Alex McLeod is to leave in August "by mutual agreement".

Stirling-based Superglass, which makes glass wool and mineral fibre insulation, announced the impending departure of Mr McLeod yesterday as it said that it expected to post a loss of £1.9 million, before interest, tax, depreciation and amortisation, for the six months to February 28.

Explaining this loss, Superglass highlighted low sales volumes in the first half of its financial year.

It declared: "Partially as a result of customer uncertainty in advance of the successful refinancing of the company completed at the end of October 2014, demand for the company's products remained subdued during the majority of the first half of the current financial year.

"The ongoing failure of the Green Deal and Energy Company Obligation to deliver any meaningful volumes further compounded a challenging commercial backdrop. Low sales volumes also resulted in increased manufacturing costs per tonne through the under-absorption of fixed overheads. This coincided with a period of increased energy consumption and higher raw material costs."

Superglass did, however, cite several "positive developments" which, it said, gave the board "increasing reason for cautious optimism".

Among these developments, Superglass noted that construction markets, particularly housebuilding, continued to grow strongly and had started to generate higher volumes for it since the turn of the year. It also cited "strong trading" throughout February.

Superglass said a search had already begun for a successor to Mr McLeod, with internal and external candidates being considered.

Explaining Mr McLeod's impending departure, Superglass said: "After five years as chief executive officer and as the company enters a new phase in its development, Alex McLeod has decided the time is now right for him to pursue other career opportunities."

The company noted Ken Munro had recently been promoted from sales director to the newly-created role of managing director of the company's principal trading subsidiary, Superglass Insulation. It added that Mr Munro had already assumed primary responsibility for all operational and trading aspects of the business.

Shares in Superglass were down 0.375p or 9.4 per cent at 3.625p in afternoon trading.