News Article
Romag Provides Operating Update
Glass making company reports positive gains after restructuring after CEO's death despites fears of loss
The Board of Directors of Romag has provided an update regarding the Company.
In August, the company announced that there had been delays in the supply of certain key materials and delays in sales to customers due to a lack of credit insurance and funding available to those customers. We also announced that a review of PV-related inventories, in the context of the dynamic market conditions in solar pv, would lead to a write-down in the valuation of certain items and that these factors would lead the Company to report a loss for the year to 30 September 2010.
The directors are pleased to report that the issues relating to the supply of key materials have now been resolved and that delays which have held back sales in the year to 30 September 2010, have eased substantially. In addition, a review of inventories is not yet entirely complete, but work to date suggests it will be necessary to write down inventories by 3.5 million.
Whilst Romag will report a loss after interest, tax and exceptional items (including the inventory write-down), the directors anticipate reporting a modest profit before these items when we make our preliminary announcement for the year to 30 September 2010.
The outlook for Romag remains positive and the order book now stands at 18 million, an increase of 2 million since the announcement in August.
