Sales at luxury goods group Waterford Wedgwood continued to slide in the first half of its financial year as the group implemented its latest restructuring plan and warned that trading remained difficult.
Sales fell 7 per cent on a like-for-like basis though, once revenues from the Royal Doulton group acquired since last year are included, overall turnover rose 11 per cent to €362.5 million.
The company also announced a new four-and-a-half year $250 million (€209 million) banking facility with a syndicate of institutions led by Bank of America and GE, which replaces existing banking arrangements.
The group, which is in the middle of a €90 million restructuring programme, reported pretax losses of €94.7 million, practically unchanged from last year's €94.5 million.
It said that the bulk of the restructuring costs were incurred in the first half, which ended on September 30th last.
Recently appointed chief executive Peter Cameron said that the group was still likely to be in the red in the second six months of its financial year.
"However, we expect that in the last couple of months of our financial year, we will exhibit the cost savings that will provide profit opportunities next year," he said.
He also pointed to a string of new, contemporary ranges being introduced by the group across its brands, including a "Connoisseur Collection at Waterford Crystal, Home Designs at Rosenthal and link-ups with Jasper Conran at Wedgwood and Gordon Ramsay at Royal Doulton". Mr Cameron expects the first products under these initiatives to arrive in shops in the first quarter of 2006.
The company said a reshuffle of leadership positions had energised the business and new distribution channels, especially in the vital United States market, and were allowing it to reach the customers it needed to restore profitability.
Waterford Wedgwood now expects annual synergies from the Royal Doulton takeover to reach €40 million per annum, double the initial estimate.
Mr Cameron said that the company did not envisage returning to shareholders for further fund-raising.
Waterford Wedgwood shares fell following the results announcement, giving up more than 12 per cent to €0.05. Shares in the firm, have fallen nearly 50 per cent over the last 12 months.
