Superglass Share Discussion Threads

[nurdin] 14/9/2008 17:11

Balance sheet looks very weak unless I am missing something.913% gearing...is that correct?

[cambium] 12/9/2008 15:34

good thought qwazi

[qwazi] 12/9/2008 10:01

The government announcement yesterday, that all households will get 50% off household insulation, must be fantastic news for Superglass, who manufacture the insulation.

Earnings are forecast to be 8.9p this year rising to 11p next year - and that's before yesterday's announcement - putting it on a p/e of 6.3x falling to 5.1x.

Dividend of 5.1p gives a juicy yield of nearly 10% - and it's ISAble as well.

[simon gordon] 01/7/2008 12:32

How can they say the balance sheet is strong when it is loaded with debt?

I am sick of the spin that companies proffer - they deserve no buyers only sellers. It is a disease.

[nam0] 18/6/2008 13:19

I am putting a small punt here,

It seems like its bottomed out.

CERT is a no brainer.

[spital23] 29/4/2008 22:56

From Growth Company Investor if you are interested - not for me though

Companies: SPGH
29/04/2008
Government energy efficiency programmes such as the Carbon Emissions Reduction Target (CERT) are driving the UK insulation market and swelling prospects for Sterling-based Superglass, a leading manufacturer of glass mineral fibre insulation.

Specialising in the retrofit market, the company will be able to produce 70,000 tonnes of the fibre by the end of 2008, having invested £11.8m in its manufacturing facilities since 2003.

Rising red tape is forcing utility companies to improve the quality and quantity of insulation in new builds and retrofits or face hefty fines – effective insulation is the best way to do this. Moreover, the latest efficiency targets for CERT, which came into force on 1 April, are creating significant demand for insulation products.

Interim figures to 29 February revealed a 27% rise in pre-tax profits (adding back amortisation) to £3.3m, ahead of analysts' numbers, despite a decline in sales to £20.5m (£21.4m), mainly caused by a delay in the beginning of the latest CERT. Investors were treated to a maiden interim dividend of 1.7p, payable from increased earnings of 1.3p (0.3p).

Brewin Dolphin suggests 180p as fair value for the shares, presently trading at 118.5p, following a de-rating of insulation stocks. It says Superglass should outperform other insulation companies, while flagging up its strong domestic growth and experience in export markets. Based on the house broker's full-year estimated earnings figure of 12p, the shares are trading on a forward multiple of 9.6 and look an attractive investment proposition.

[asparks] 31/3/2008 14:25

Are any of you in ROMag solar? It signed a deal with an Arab outfit in UAE last week. LOTS of sun in Middle East. And lots of Oil money to invest...

Gulf International Trading Group partners with patented glass manufacturer Romag (ROM)
Eco-friendly distributor Gulf International Trading Group (GITG) has signed a major contract with UK-Based Romag, a manufacturer of patented 'green' glass products.
United Arab Emirates: 4 hours, 52 minutes ago PRESS RELEASE

Under the mandate of UAE Vice President & Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the need for eco-friendly products and methods has been a driving force between this partnership, as the demand for 'green' building solutions has already begun to skyrocket.

Romag's Sales Director, Keith Morrison, was enthusiastic about its partnership with GITG noting, 'We have been looking for a partnership in the Middle East for several years now and are most confident in building our relationship with GITG. Their enthusiasm and unique vision, supported by Romag's technical ability and quality products will prove to be a winning formula. This arrangement also supports Romag's growth strategy in a market where renewable energy and security are a priority.' When asked about growth in the region, Morrison added, 'With a partnering approach and patience, we see business growing at a rate that will benefit both parties in the medium term with limitless and long-term potential.'

GITG is the first eco-friendly distributor in the UAE. Since its inception, it has been recognized for its commitment to providing the Gulf and UAE with alternative construction products that protect and benefit the environment via energy efficient building solutions. The firm's partnership with Romag is a logical step in its growth, as Romag produces energy efficient glass, also known as PowerGlaz, with solar modules that can actually generate energy. These photovoltaic panels are unique in that they convert light into electricity thereby reducing power costs and CO2 emissions. Morrison highlighted that, 'Considering the 340+ days of sunlight enjoyed in the UAE, the amount of electricity generated throughout buildings that utilize Romag will go unprecedented. This is a perfect location to maximize the efficacy of our product.'

The initial cost of the solar installation is offset during construction and the electricity produced by PowerGlaz continues to lower electricity costs during the lifetime of the building.

The Energy Information Administration reports that energy consumption in the Middle East will increase by an estimated 2.3% per year between 2004 and 2030, while the total world energy consumption will only increase 1.6% per year for the same time period. There is indeed an urgency to develop sustainable buildings in the region that will rely on renewable energy sources.

GITG's CEO, Mr. Khalid Al Midfa elaborated on the need for a partnership with Romag stating, 'The recent mandate to 'go green' in addition to the high demand for glass, as it is used on just about every new building project in the region, has been a surefire reason to partner with Romag. Their emergence in the Middle Eastern marketplace is going to have a positive impact on eco-friendly initiatives and we are looking forward to the green footprint we'll be making together throughout the region.'

[tom.muir] 22/2/2008 14:29

Tipped as a 'buy' in today's Investor's Chron

[m.t.glass] 21/1/2008 13:27

Prior to Knauf's attempted purchase of Superglass in 2004, the Competition Commission looked at the likely balance/imbalance in UK supply and demand for glassfibre insulation products, and concluded that the then situation (of capacity exceeding supply and thereby depressing product pricing) would reverse between then and 2007, giving companies an opportunity to up prices, but would revert to the disadvantageous situation sometime in 2007 when additional capacity came on stream. Has this happened? If so, it could hardly come at a worse time with housebuilding quite likely to fade. Tighter regulations and rising domestic energy price rises will presumably still help sustain a market among existing householders - but that is a much smaller segment than new-build.

Or is there a more up-to-date report available saying something different?

[simon gordon] 17/1/2008 14:54

I am not surprised to see the share price fall - SPGH are a one trick pony.

SPGH are a titchy company and it will be a slog to get the share price over two quid - maybe by the end of '08 when the CERT orders are in full flow and '09 guidance is clear.

I will not be buying as there is better value in the market.

Good fortune!

[simon gordon] 14/10/2007 17:21

Does anyone know what the eps forecasts are?

------

Edit:

08/07
PBT - 8.1m
P/E @ £2.05 = 14.6x

08/08
PBT - 10.2m
P/E @ £2.05 = 12.6x

Taken from the Hodless Brennan note 12/7/07

[asparks] 23/8/2007 09:57

o/t, but solar glass

solar integrated tech (sit) up 12% today. Due a major recovery me thinks.

[simon gordon] 12/8/2007 15:49

Hi Hosede,

I picked ERG over SPI and correctly pulled out at £3.70

SPI was up the road from me but I didn't like the mobile communications division and thought ERG could grow quicker. ERG did grow quicker but destroyed the equity in the process. SPI have done it properly - c'est la vie!!!!

I agree small caps. such as SPGH are looking expensive relative to BP/Shell, or how about RBS with a yield of 8% if bought before the 15/8 and held for a year. You could do a buy-to-let with RBS!!!!

Good fortune!

[hosede] 12/8/2007 15:44

positive mention in Moneyweek friday also EAGa (which installs the stuff amongst other things)

[hosede] 09/8/2007 14:07

Simon
As long as there are lots of goverment grants available the market will probably not be too senstive to price increases - and of course their competitors will be equally affected - but when you can buy Shell or BP on single figure PEs is hard to get overenthuastic about this in the high teens - but then I thought that about SPI and they've rocketed

[simon gordon] 07/8/2007 12:05

Hi Hosede,

With spartan data available I am struggling to imagine how they can really get profits rocketing and be given a juicy rating. The UK market will expand but they cannot take over competitors, as they have such a large market share. They could expand into Europe but that will be expensive and time consuming - I imagine barriers to entry are not very large.

Good point re: energy prices. There could be a time lag in increasing prices to customers and I suppose a price war for market share is always a danger for a one product company.

[hosede] 07/8/2007 11:48

This looks a very good defensive play, Growth should be steady but not spectacular - I can't see it setting the world on fire. Glass fibre production is very energy intensive and big increases in oil/gas costs wil have to be born - hopefully these can be pased on to customers. Still watching -

[jakes114] 31/7/2007 18:00

Nice for an ISA too, just sit back and let them roll out the glass rolls, once the market understands the potential away we will go.
Happy to hold
Jakes

[simon gordon] 30/7/2007 17:20

'SUPERGLASS, the newly listed glass wool insulation manufacturer, is to invest £5 million in its Stirling site.

The company will use the expansion to increase capacity from 60,000 tonnes to 70,000 tonnes "by the middle of next year".'

[cambium] 13/7/2007 12:19

cheers added

[simon gordon] 13/7/2007 09:44

Hi Cambium,

Here is the website for the header:

[cambium] 13/7/2007 09:08

Interim Management Statement this morning -

Trading in the current financial year to date has been in line with the Board's
expectations and we remain confident in the outlook for the remainder of the
year.

New initiatives, such as the Superdad campaign, are beginning to bring benefits.
The Company has successfully broadened its customer base by securing new
business with a leading independent builders' merchant buying group and is also
beginning to see the benefits of reduced energy costs. We remain highly focused
on delivering efficiency improvements and reducing input costs.

The Company has reduced net debt by a further GBP1.1m since its 31 August 2009
financial year end and is highly focused on cash generation, which together with
strong working capital management has enabled it to operate comfortably within
banking covenants...

It is hoped that consultation on the uplift will be completed before the forthcoming general election to encourage release of funding which we would expect to generate higher insulation volumes in the final quarter of 2010. Outside CERT, short term demand is difficult to predict, non residential activity remains weak, but signs are positive from the new build housing sector.






Superglass (SPGH, 27p, £15.6m), one of the UK's leading manufacturers of glass mineral fibre insulation products, reports trading from 1 September 2009 to 14 January 2010, is in line with Board's expectations. Tighter working capital and strong cash generation has reduced net debt by £1.1m. Markets remain challenging. The residential carbon saving market, driven by the CERT programme has continued to slow as funding from energy retailers has been restricted. The ending of direct mail out of light bulbs from 1 January 2010 will bring some benefits, and the 20% uplift in the value of the scheme will favour insulation. It is hoped that consultation on the uplift will be completed before the General Election to encourage release of funding which we would expect to generate higher insulation volumes in the Q4 2010. Outside CERT, short term demand is difficult to predict, non residential activity remains weak, but signs are positive from the new build housing sector. The market forecasts 2010 PBT of £5.5m, EPS of 6.7p and DPS of 1.5p and in 2011, PBT of £5.7m, EPS of 6.94p and DPS of 1.5p. The stock trades on a 2010 prospective P/E of 4x falling to 3.9 in 2011, with a generous yield of 5.5%. The low rating combined with the compelling yield encourages us to reiterate our BUY recommendation.