Romag: H1 operating profit up; lower H2 expected

Romag Holdings Plc recently posted higher first-half operating profit from continuing operations, thanks to profit from the disposal of currency hedging contracts, also announcing plans to lay off abo…

Romag Holdings Plc recently posted higher first-half operating profit from continuing operations, thanks to profit from the disposal of currency hedging contracts, also announcing plans to lay off about 70 employees to cut costs at its PowerGlaz products business. The glass and plastic composites manufacturer for renewable energy applications also informed regarding lower sales and profits for the second half from the same period in 2008, unless the solar photovoltaic (PV) markets recovered. However, outlook for the next financial year and the near future is positive thanks to initiatives it undertook during the first half, the company said. With regards to the six months to 31 March 2009, Romag posted an operating profit from continuing operations of GBP 1.4 million (USD 2.24 million), an increase from GBP 1.2 million pounds in 2008. The company reported an 18% increase in first-half pre-tax profit of GBP 1.1 million caused by a GBP 2.7 million profit on disposal of currency hedging contracts. Group revenue during the six-month period dropped 12% to GBP 10.2 million. Romag said lower trading margins were worsened by a one-off provision of GBP 0.9 million relating to the writedown of finished goods inventories caused by the rapid decline in prices in the solar PV market. Sales to the solar PV market declined by 11% over the same period in 2008, the company added.