A number of restructuring measures at consumer and household goods supplier IWP will cost the group an estimated €18 million this year, its board told shareholders at an extraordinary general meeting yesterday.

Shareholders yesterday approved IWP's sale of its plastics division, Skiffy Group, to German operator Bunzl for €28.1 million. The net proceeds of the sale, €26.1 million, will be used to cut the company's debt, which stood at €107.2 million at the end of last September.

In a statement, chief executive Mr Jim Murphy said IWP would have to provide for several one-off costs, related to its UK and Canadian operations, and revised funding arrangements with its banks.

Mr Murphy estimated that €18 million would have to be written off against IWP's full-year results to cover these exceptionals.

After the meeting, Mr Murphy stressed that the estimate was unaudited.

"We had to give an estimate at today's meeting," he said. "But it will be very much a once-off."

His statement said that this would be partly offset by the €9.2 million profit realised by the Skiffy sale. Its year end is due on March 31st.

Last year, the firm reported that it had incurred exceptional losses of €86.9 million, leaving it with an overall deficit of €83 million for the 12 months to March 31st, 2003. Underlying pre-tax profits were €4.3 million.

Mr Murphy's statement also revealed that IWP was close to concluding an agreement in principle with its lenders that would ensure "sufficient availability of funds through to March 26th".

Last December, IWP said it had begun talks with its bankers, including AIB in the Republic, in an effort to guarantee future funding.

The statement added that underlying growth for this fiscal year would be broadly in line with expectations. IWP's shares dropped one cent to 33 cent in Dublin yesterday.