Sun shines on profits at solar panel manufacturer

Dec 13 2007 by Andrew Mernin, The Journal

GLASS manufacturer Romag yesterday recorded a 44% climb in annual pre-tax profits and cited soaring sales of its solar panel product as the main driver behind another year of growth.

Meanwhile, the County Durham company plans to create up to 40 jobs next year as its two new production lines come on board and it looks to increase its presence in Europe.

The Consett-based firm saw overall sales climb 6% to £17.4m in the year to September 30 as pre-tax profits jumped 44% to £2.76m.

In the same period, earnings per share climbed 52% to 4.7p and gross margins improved by 34%.

The firm said it would seek to grow its presence in the European market in 2008 on the back of a £58m deal won in March to supply a Spanish customer over the next five years with its solar panel product PowerGlaz. Chairman John Kennair said: “The traditional security, transport and architectural products which are now focused on the higher margin areas continue to play an important role in the development of the business.

“However, the directors now expect the major growth to flow from the group’s PowerGlaz range of products over the coming years.”

Chief executive Lyn Miles said she was extremely enthusiastic about the company’s prospects in 2008.

She said: “As well as Spain, we also have customers in Germany, France and Italy and potential customers in Greece. We have even exported our products to China. PowerGlaz made up 44% of our turnover this year and we expect it to become the majority focus in 2008, although we have no intention of dropping any of our other products.”

Romag employs 170 people at the Leadgate Industrial Estate.

See page two to read chairman John Kennair's statement on Romag's results.