UK Romag, based in County Durham, is involved in a dispute regarding a GBP 2.3 million charge with a supplier of photovoltaic cells used in the manufacture of solar glass.
The company said the suppli…
UK Romag, based in County Durham, is involved in a dispute regarding a GBP 2.3 million charge with a supplier of photovoltaic cells used in the manufacture of solar glass. The company said the supplier was no longer able to deliver the required product and wanted Romag to take a different type. Romag had already paid a deposit to receive the goods under contract and such items are regarded as intangible assets valued at GBP 2.4 million, which will now be written down in its annual results. Vinay Bedi, divisional director at Brewin Dolphin stockbrokers in Newcastle, said: Romag said it had taken legal advice and was taking all necessary steps to protect its position and would be robustly pursuing the recovery of the outstanding balance of the deposit and/or damages from the supplier. Romag, which employs 180 people, forecast a modest profit for 2010.