UK-based specialist glass developer, Romag is reportedly entangled in a row over a £2.3 million charge with a supplier of solar photovoltaic cells used in the manufacture of solar glass. The company said that its supplier was no longer able to deliver the required product and had asked Romag to take a different type.

However, Romag had already paid a deposit to receive the cells under contract and such items are regarded as intangible assets valued at £2.4m. This will now be written down in the company’s annual results.

Vinay Bedi, divisional director at Brewin Dolphin stockbrokers in Newcastle said, “They assumed in their accounts by taking it as an intangible asset that the product had already been delivered to them. They are now reversing that assumption.”

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”.