Insulation firm Superglass increases profits

It is estimated 2.7 million lofts will be re-insulated by 2011

Stirling insulation company Superglass has reported higher half year profits but sales fell by 16%.

Superglass made £350,000 after tax and other charges to the end of February - a turnaround from a loss last time.

The company said a shortage of funding in the government's carbon emissions reduction target (Cert) programme had hit trading.

However, it said it expected an extension to the scheme after the general election.

Chairman Tim Ross said: "We expect the next government to announce the extension to this scheme, to which all the main political parties have given their support, shortly after the General Election and that this will significantly stimulate demand from 2011 onwards."

Superglass said energy efficiency improvement in buildings was a key method for the government to deliver on carbon reduction targets and this was delivered through the Cert programme.

The company has estimated there will be about 2.9 million cavity wall and 2.7 million loft insulation upgrades by 2011.

'Superdad'

Superglass said sales through distributors and builders merchants increased by 10% for the company over the first half.

Its key "Superdad" initiative with Scottish and Southern Energy launched last year provided "considerable impetus".

The scheme allows customers to buy discounted insulation through builders merchants.

On the wider market, Superglass said it had seen some stabilisation in new build construction although it remained at historically low levels.

The group's chief executive, Alex McLeod, said: "We anticipate that the recently announced government measures on stamp duty and emphasis by part-owned government banks on new mortgage capital will help to drive new build construction and believe that this will be an area for future growth."

However, the company warned it had a cautious outlook while the fundamentals of the economic recovery remained uncertain.