Superglass boss Alex McLeod calls for clarity on future of Cert energy scheme

Published Date: 26 November 2009
By Hamish Rutherford
NEW Superglass chief executive Alex McLeod has called for clarification of the future of a government scheme to improve home energy efficiency.
The Stirling-based insulation company gained almost half its turnover in the year to 31 August from the Carbon Emission Reduction Target (Cert) scheme, which forces utilities to assist customers to improve their efficiency.McLeod, who joined the firm at the start of the month, said there was no clarity over how the government planned to encourage home energy efficiency from 2012. While the scheme has seen an increase in the retro-fitting of insulation, McLeod said "a sizeable chunk" of Britain's housing stock would still not be properly insulated by 2012.He warned the London listed group's outlook remained uncertain because of the lack of clarity over the Cert scheme, as well as uncertainty over the market for new houses.Increased sales of insulation from Cert helped Superglass offset a sharp decline from sales to the construction industry, as house building slowed. Revenue fell by £3 million to £38.1m, with earnings before interest, tax, depreciation and amortisation sliding 44 per cent to £6.6m.Chief financial officer Tony Kirkbright said the performance was "creditable" given the slump in the housing sector.McLeod said he would carry out a strategic review of the business in the coming months, but warned that measures to improve the efficiency of its manufacturing may require capital investment.Superglass cut capital investment to maximise cash flow, allowing it to reduce its borrowings by £2.4m. The company is to pay a reduced final dividend of 0.5p, which it said should leave scope for investment.Shares in Superglass dived 8p or 22.5 per cent to 27.5p.