SPECIALIST glass maker Romag said its performance since May had been disappointing and it expected to make a loss this year, despite it winning a £10.2m contract.

In a trading statement yesterday the firm, based in Consett, County Durham said disruption caused by the death in June of its popular chief executive, Lyn Miles, 57, after a long illness, had been exacerbated by delays in supplies of key materials as well as the funding squeeze on customers, which left it unable to complete sales until they have had sufficient funds on hand to pay for goods they have ordered.

In addition the company said "erosion" in prices in the photovoltaic market meant it would have to write down the value of some of its inventories before its year end in September.

In June the firm, which has seen global attention for its PowerGlaz solar glass, won a deal worth £10.2m to supply solar photovoltaic (PV) systems to North-East affordable energy provider Community Energy Solutions (CES).

The statement added: "The directors remain very positive about the outlook for the Company.

"The order book currently stands at £16m, including the contract with Community Energy Solutions and enquiries are at a high level, driven by the recent introduction of the feed-in-tariff scheme for renewable energy projects in the UK."