Glass wool insulation manufacturer Superglass has returned to trading profit a year ahead of forecast with revenue growing from £23.6m in 2017 to £32.9m in 2018, a 39% increase.
The Stirling-based company’s annual accounts show significant growth in its gross profit – from 22% in 2017 to 37% in 2018 – delivering a profit before tax and exceptional items of £564,000.
Growth was driven by a number of contributing factors, including increased sales volume, average selling price growth, and operational cost efficiencies.
Superglass has undergone transformational change over the past decade, and its manufacturing facility is currently in the process of a major £37m redevelopment. A 187-tonne furnace, curing ovens, cooling, cutting and milling equipment are being replaced and an automatic packing system is being installed. Once complete, the work will double production capacity to 60,000 tons annually. Despite the ongoing improvement programme, Superglass exceeded its forecast to break even in 2018 to record a profit.
In 2016, Superglass joined the TECHNONICOL group of companies, the largest manufacturer of construction materials in Russia and Eastern Europe. It owns 53 manufacturing facilities across the continent, including Superglass’s site at Thistle Industrial Estate in Stirling.
Theresa McLean, Chief Financial Officer for TECHNONICOL UK and Ireland, said: “The results Superglass achieved in the 2018 financial year are positive. Returning to profit following structural and strategic changes for the business is, however, just the start of the journey.
“The latest results provide a springboard for a positive step-change in trading results in the years ahead.
“Demand for glass wool insulation continues to be very strong both domestically and in export markets, and with the major manufacturing investment we’re making in the Stirling site, Superglass is set to double its production output capabilities and capitalise on the opportunity.
“Despite political uncertainty, the appetite for the premium insulation solutions that we offer is expected to continue. We have solid foundations from which to continue to build the successful Superglass brand for years to come.”
Glass wool insulation produced by Superglass is made from up to 84% recycled glass and is estimated to save around 300 times the amount of energy used to manufacture it.