Royal Doulton, the British china and tableware group, in which Waterford Wedgwood has a 14.9% stake, has announced a reduction in pre-tax losses to UK 29.6 million (Euros 48.5 million) in 1999 from UK…
Royal Doulton, the British china and tableware group, in which Waterford Wedgwood has a 14.9% stake, has announced a reduction in pre-tax losses to UK 29.6 million (Euros 48.5 million) in 1999 from UK 36.8 million in 1998. However, sales fell by 20% to UK 190.3 million (Euros 311 million) and an operating loss of UK 18.5 million was incurred, compared with a profit of UK 9.7 million previously. The company“s chairman, Mr Hamish Grossart, described trading as “very difficult”, but stressed that “behind the poor operating results, much has been achieved in the first full year of a four-year turn-round programme”. Net debt has been reduced by three-fifths to UK 17.8 million and the gearing has been reduced from 61% to 26%. Worldwide employment was reduced by 24% to 5,700. “With a repaired balance sheet, and like-for-like sales in the first two months of 2000 in line with last year, the worst appears to be behind us,” said Mr Grossart. When Waterford Wedgwood acquired its 14.9% stake last year, Royal Doulton sought clarification of the group“s intentions. Meetings did not result in the companies working together. Waterford Wedgwood purchased the Royal Doulton shares at 90p sterling per share. Meanwhile, Grossart said his four-year recovery programme was still on track after its first year, despite a November profit warning. Grossart took control more than a year ago after former chief executive Mr Patrick Wenger was seriously injured in a car crash.