Insulation volumes relating to government’s Carbon Emission Reduction Targets dry up over summer

Insulation supplier Superglass has posted a profit warning following a fall-off in demand for insulation on a government-backed scheme.

The Scottish business said the lower volumes had had a “major influence” on company performance.

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Energy suppliers have been set 2012 Carbon Emission Reduction Targets that must be met by offering grants and incentives for occupiers to improve the energy efficiency of their homes.

Superglass said the fall in demand had reduced the plant efficiency of the business. It also said it had been unable to pass on rising energy costs to customers.

Superglass management said it was taking appropriate actions to manage controllable costs.

The company said it was likely that a substantial increase in energy suppliers’ activity would be required to achieve the energy suppliers’ targets by 2012.