Waterford Stanley back in the black
The firm, which makes about 80% of all cast-iron stoves in Ireland, said it made a profit before tax of €1.9 million in the year to March 31 2004, from a loss of €6.8m the previous year.
Though turnover improved only slightly to €29.3m, it benefited from restructuring, which saw sites in Wexford and Waterford closed. At operating level, the company made a profit of €286,979 from a loss of nearly €3m the previous year. The main contribution to the pre-tax line was the decision by its main shareholder to inject €2.5m in equity and forgive a €5m loan.
In response, the company has agreed another round of jobs cuts. In 2004, its workforce reduced from 304 to 225, with its production staff bearing the brunt of the cuts. The moved shaved €1.6m off its wages bill.
“The group is continuing with the fundamental restructuring of its operations. It is anticipated that the cost-savings arising from the restructuring will significantly increase the profitability of the group,” the directors said in a note to the accounts, which were just filed at the Companies Registration Office.
“The group invested €544,000 in an upgrade of its IT systems. This investment is expected to yield significant benefits.”
Waterford Stanley was bought by the management team in late 2000 for €21m. The deal was backed by PRICOA Capital, a European investment firm.
Gerry Currid, who was joint managing director at the time of the buyout, has since sold his stake and left the company. It is now run by Michael Laffan.
