Superglass warns on challenging market and cost pressures

Superglass, a manufacturer of glass mineral fibre insulation products, has warned shareholders that market conditions in the UK continued to be 'extremely challenging' and 'remain difficult to predict' and said a stronger than anticipated demand for volume commodity products has had a negative impact on its average sales price.

The firm added that overall market conditions are also affecting prices.

In a statement made at the annual general meeting, the Chairman, John Colley said: "Input cost pressures persist with energy costs continuing to rise during the period. Superglass manages its working capital effectively and, despite the challenging market conditions, our net debt position continues to be better than management expectations."

He added: "The board remains focused and is making good progress in meeting its strategic objectives of migrating Superglass into a lower cost, higher quality producer of glass fibre insulation solutions with an emphasis on selling its products through broader routes to market, an enlarged customer base and a more comprehensive range."

The share price fell 6.12% to 5.75p by 13:25 on Monday.

NR