Final Results -2-

rise in inventories during the year to GBP13.7m (2008 GBP8.0m). Unlike some 
companies in the PV market, Romag does not consider it necessary to reduce 
inventories "at any price" when it believes that profitable opportunities to 
dispose of product are starting to emerge. Indeed the directors do expect 
inventories to return to more normal levels over the course of 2010. 
 
 
Romag will itself be taking advantage of the UK's new feed-in-tariff proposals. 
We are currently constructing a PV installation at Romag's factory in 
County Durham, which we believe will be the largest PV installation in the UK 
when it is completed. As well as providing a good return on investment, it will 
be an excellent "demonstration site" for what can be achieved with PV under the 
feed-in-tariff regime and complement the PV training centre which is also in 
course of construction on the site. These developments include GBP3.1m of 
own-manufactured PV panels, which are included within capital expenditure for 
the year. 
 
 
Gearing (defined as total borrowings divided by equity shareholders' funds) at 
the year end was 57% (2008 42%) and at that date the group had unused banking 
facilities of GBP3.1m. 
 
 
Dividend 
 
 
Having regard to the continuing uncertainties in financial markets as we move 
into 2010 and the wish to conserve cash over this period, the directors feel it 
prudent not to recommend a dividend for this financial year. 
 
 
Outlook 
 
 
The recent recovery in PV demand, combined with the stabilisation in prices and 
the introduction of the feed-in tariff in the UK market, provides optimism for 
the future of the PV market. The new products developed by Romag and the 
agreements with Kingspan and British Gas lead the directors to believe that 
Romag is well positioned to take advantage of this recovery. 
 
 
 
 
 
 
JOHN M. KENNAIR, MBE 
Chairman 
 
 
15 December 2009 
  Consolidated income statement 
for the year to 30 September 2009 
______________________________________________________ 
 
 
 
 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 | Notes  |      2009 |   |     2008 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        | Unaudited |   |  Audited | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |   GBP'000 |   |  GBP'000 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Group revenue                                   |        |    19,726 |   |   33,634 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Cost of sales                                   |        |    17,895 |   |   26,299 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Gross profit                                    |        |     1,831 |   |    7,335 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Distribution costs                              |        |       233 |   |      388 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Administrative expenses                         |        |     2,605 |   |    2,651 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |     2,838 |   |    3,039 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Group trading (loss)/profit                     |        |   (1,007) |   |    4,296 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Other operating income                          |   3    |     2,779 |   |       57 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Group operating profit from continuing          |        |     1,772 |   |    4,353 | 
| operations                                      |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Finance costs                                   |        |     (696) |   |    (619) | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Profit on ordinary activities before taxation   |        |     1,076 |   |    3,734 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Tax expense                                     |   4    |     (319) |   | (1,204 ) | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Profit for the year from continuing operations  |        |       757 |   |    2,530 | 
+-------------------------------------------------+--------+-----------+---+----------+ 
|                                                 |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Earnings per share:                             |        |           |   |          | 
+-------------------------------------------------+--------+-----------+---+----------+ 
| Basic and diluted                               |   5    |      1.5p |   |     5.1p | 
+-------------------------------------------------+--------+-----------+---+----------+ 
 
 
  Consolidated statement of recognised income and expense 
for the year to 30 September 2009 
______________________________________________________ 
 
 
 
 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |       2009 |  |       2008 | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |  Unaudited |  |    Audited | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |    GBP'000 |  |    GBP'000 | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| Income and expense recognised directly in       |        |            |  |            | 
| equity                                          |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| Gain on cash flow hedges                        |        |      1,590 |  |      1,132 | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| Transfers to income statement:                  |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| On cash flow hedges - other operating income    |        |    (2,722) |  |          - | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| Tax credit/(charge)                             |        |        306 |  |     ( 317) | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| Net income recognised directly in equity        |        |      (826) |  |        815 | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            | 
+-------------------------------------------------+--------+------------+--+------------+ 
| Profit for the year                             |        |        757 |  |      2,530 | 
+-------------------------------------------------+--------+------------+--+------------+ 
|                                                 |        |            |  |            |