23 September 2010 – trading update
An encouraging pre-close trading statement has been issued by Superglass for the year ended 31 August 2010. When we last commented on the company in July, we were concerned about the impact of the failure of one of the group’s furnaces, but repairs to this have now been completed. And, the repairs should mean that the life of the furnace will be extended deferring a planned rebuild of the unit for at least 18 months. This is clearly good news and with recent trading being in line with expectations, pre-tax profits for the year to 31 August are likely to emerge at £3.7m for earnings per share of 4.5p. We upgrade our recommendation to BUY.