IWP reports 11% fall in sales

IWP, the subject of a failed buy-out attempt recently, has reported an 11% drop in sales at the interim stage.

Since the attempted coup, Jim Murphy, former boss of Golden Vale, now part of Kerry Group, has taken the helm at the group.

IWP said yesterday it was engaged in talks to secure revised funding for the group.

The twin objectives are to cut borrowing and improve earnings.

Costs associated with the revised funding discussions will have a drag effect on earnings, but that was containable in the context of the current talks.

Even without any moves in that direction, analysts said the group was suffering as the current crop of figures indicated.

Mr Murphy said he was confident that a satisfactory outcome can be achieved before the group reaches the end of this financial year.

At this stage, the group which has personal care, household and cosmetic products, saw revenues in the six months to September fall by 11% compared with the same period in 2002.

Operating profits, before goodwill and exceptional items, were up 26%, while its margins increased from 3% to 4.3%.

The group’s net debt increased by €14.3m to €107.2m.

In the year ahead, priority is to cut borrowings by selling non-core assets and maintaining a strong focus on managing its brands and further developing customer relationships. It will dispose of its Putzfield business, saying it was “clearly non-core.”

Looking ahead on the trading side, Mr Murphy said second-half trading had started well, giving the group confidence that its full-year performance will remain ahead of the year earlier.

Mr Murphy said: “in spite of the difficult circumstances outlined in this statement, the group is trading profitably and is capable of growth in the future. The key task is to restore confidence in the group.”