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The management team has worked hard to transform the capital base of the Company Tim Ross, Chairman |
 The much needed capital expenditure programme supported by new and existing investors together with Clydesdale bank and Scottish Enterprise, underpins a clear strategy for growth which combines a lower delivered product cost with a broader customer base, to improve Superglass' competitive position.
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My statement today looks to the future. Over the last year, Superglass has faced unprecedented operational and trading challenges. These have been well documented. Despite this the management team has worked hard not only to increase sales to £32.4 million by broadening the Group's customer base and routes to market but also to transform fundamentally the capital base of the Company through a successful equity issue and capital restructuring.
On 2 December 2011, Superglass confirmed that it had raised £8.0 million net of expenses from investors and agreed a capital restructuring in collaboration with its bankers, Clydesdale Bank, to reduce its core borrowings to £5.1 million through the conversion of £12.15 million of its bank debt into convertible shares. On 17 November, Scottish Enterprise announced that it had approved Superglass' Regional Selective Assistance application for a grant of up to £2.0 million. The net proceeds of the grant and equity issue will be used to fund the Group's planned capital expenditure programme and to provide additional working capital.
This capital expenditure programme is much needed and will commence in March next year with completion scheduled for March 2013. In conjunction with external consultants we have identified a number of areas where we can upgrade our processes and equipment to deliver increased capacity and operating efficiency gains, resulting in savings of up to £3.6 million in annual operating costs which will start to impact meaningfully in the 2012/13 financial year. This investment underpins a clear strategy for growth which combines a lower delivered product cost with a broader customer base and product range to strengthen Superglass' competitive position.
I would like to take this opportunity to thank all our existing and new investors as well as Clydesdale Bank and Scottish Enterprise for their substantial support as we move into the next stage of our development and position Superglass for the future.
Tim Ross
Chairman
6 December 2011
