The core thesis has been based on growth in low-rise residential construction volumes from the low levels of recent years, which would support insulation sales volumes. Due to EcoUp’s relatively high gross margin percentage, this would flow through effectively to the bottom line. Currently, the Swedish sales subsidiary appears to be in a ramp-up phase. Reaching positive figures there would support group profitability relative to the level of the previous financial year.
However, following the update on targets, there is pressure to revise our forecasts; the postponement of targets and the lowering of target levels suggest a slower turnaround than we anticipated.