Insulation manufacturer Superglass Holdings plc broke even in the six months to February 28, compared with an adjusted pre-tax profit of £2.6m for the previous first half.
Sales dropped 10.7% to £15.0m from £16.8m, which the company puts down to a continued shortfall in the Carbon Emissions Reduction Target Scheme (CERT).
Lower prices, higher energy costs and planned repairs to the group’s second furnace also affected the figures.
Although the company said there had been an improvement in activity since February, pressure on margins means current run rate profitability was still disappointing.
Reported loss was £2.2m, against a previous profit of £0.35m.
The group said its first-quarter volumes were down 20% but second-quarter volumes were 1% ahead of last year, despite the poor December weather and the continued shortfall in CERT.
Chairman Tim Ross said: “‘Superglass has made positive progress in the period under review against a backdrop of a CERT market which continues to lag expectations. Management have however taken positive action to increase volume and gain market share.
“The operational difficulties experienced in the latter part of 2010 are now behind us and we are benefitting from the resulting efficiency gains.
“The timing and extent of the anticipated upturn in CERT-related volumes remain difficult to predict. At this stage, however, we continue to believe that current market expectations for the year should be achieved.”