UPDATE 1-Romag H1 operating profit rises; warns of lower H2

* Says trading margins hit by 0.9 mln stg one-off provision

* Says unlikely to repeat strong H2 results from last year

* Sees outlook for next year and beyond positive

* Says to lay off 70 employees to cut cost

* Shares indicated down 10 pct (Adds details)

May 27 (Reuters) - Romag Holdings Plc ROM.L posted a higher first-half operating profit from continuing operations, helped by a profit from the disposal of currency hedging contracts, and said it planned to lay off about 70 staff to cut costs at its PowerGlaz products business.

The maker of glass and plastic composites for renewable energy applications also warned of lower sales and profits for the second half from the year-ago period, unless the solar solar photovoltaic (PV) markets recovered.

However, its outlook for the next financial year and beyond is positive from a number of initiatives it undertook during the first half, the company said.

For the six months to March 31, Romag posted an operating profit from continuing operations of 1.4 million pounds ($2.24 million), up from 1.2 million pounds a year ago.

The company reported an 18 percent rise in first-half pretax profit of 1.1 million pounds due to a 2.7 million pounds profit on disposal of currency hedging contracts.

Group revenue in the six months fell by 12 percent over last year to 10.2 million pounds.

The company said lower trading margins were exacerbated by a one-off provision of 0.9 million pounds relating to the writedown of certain finished goods inventories due to the rapid decline in prices in the solar PV market.

Sales to the solar PV market declined by 11 percent over the same period last year, it said.

Romag shares were indicated down 10.2 percent at 44 pence at 0708 GMT. ($1=.6264 Pound) (Reporting by Ramkumar in Bangalore; Editing by Anne Pallivathuckal)