Shares in insulation manufacturer Superglass Holdings plc fell 20% after a trading update released on this week (March 1).
In a trading update ahead of its interim results for the six months to February 28, Superglass said its performance had suffered from a slower than expected increase in sales via the government’s CERT (Carbon Emissions Reduction Target) scheme.
The shares fell 22% to 26p at midday on Tuesday. The company also blamed the bad weather in December and increasingly aggressive competition so far this year.
However, non-CERT sales – mainly those into distributor and builders merchant channels – had continued to improve as a result of new initiatives started during 2010.
A stronger outlook for the second half is unlikely to compensate for the first-half shortfall.
Superglass said it remained confident that it is in a position to benefit from an improvement in market conditions which would ultimately flow from the CERT extension.
Interim results are due to be released next month.