A Scottish insulation company is seeking to turn round its misfortunes with the introduction of new technology.

Stirling-based Superglass is investing in new "fiberising" equipment and cost-cutting measures to stay in business.

The revival plan is being called Project Phoenix.

Superglass is already in financial difficulties. Preliminary results for the year to the end of August showed the company expects "meaningful benefits" to be generated by Project Phoenix from the start of the second half of the current financial year.

The company estimates the investment programme will lead to annual cost savings of £5m. But Superglass said the plan has been "hampered" by continuing weakness in core markets.

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Last year the company revenues totalled at £32.4m, with sales volumes up 3%.

Profit before tax and other adjustments was £400,000. This is a decline from £1.6m the previous year.

Superglass said "uncertainty had prevailed in key markets" throughout the financial year.

The company noted construction market activity is down by over 6% in volume terms on the previous year.

It added: "Recent announcements about initial support for Green Deal in the form of cash back offers are very welcome and the group continues to bring pressure on government, with all key industry members, to provide the necessary transitional arrangements to support its ambition for a substantial increase in activity through Green Deal in the long term."

The revival plan has also seen Superglass bring in two new directors, a finance director and interim sales and marketing director, after reporting a decline in sales.

(IT)