Waterford Wedgewood shares drop by 36% after finance director resigns

SHARES in Waterford Wedgwood fell by as much as 36% yesterday after the company’s finance director quit to become finance boss at AgCert International Ltd.

The company said finance director Paul D’Alton had resigned after less than a year in the role.

The share later recovered to close down 6.4% at 4.4 cent.

“Patrick Dowling, currently the company secretary at Waterford Wedgwood, takes over as acting chief financial officer with immediate effect,” the company said in a statement yesterday.

Mr D’Alton, who is a former chief financial officer at both Bank of Ireland and State airline Aer Lingus, only joined the company in May last year following the departure of Richard Barnes, who had been finance boss for more than 10 years. Waterford Wedgwood chief executive Redmond O’Donoghue said: “Paul played an important and constructive role and has been offered an exciting opportunity. We wish him every success.”

The company’s shares, which tumbled more than 30% last October when it unveiled plans to issue new stock to fund the €57.3 million buy of Britain’s Royal Doulton, were down 36% at 3 cent in Dublin in early morning trading.

Mr Dowling, who has been company secretary at Waterford Wedgwood since 1999, is a former finance director of Fitzwilton Plc and has also worked for Bank of Chicago and Citibank.

“Patrick Dowling brings considerable banking and public company experience and is a most able replacement,” said Mr O’Donoghue.

Waterford Wedgwood’s interims to the end of March 2005 are due in June, but a trading update may be provided ahead of this date. NCB stockbrokers analyst John Sheehan expects that trading has remained challenging for the group.

“Sales at constant currency in November and December rose by 3% and 2%, respectively, but were reportedly down year on year in January,” he said in a note to clients.

Mr Sheehan also noted that in recent weeks, rival ceramics producer Lenox has reported poor trading and the business is subject to a strategic review by its parent.

“We expect the next update from Waterford Wedgwood to outline integration plans for Royal Doulton as well as to detail progress on the targeted realisation of €40m from working capital.

“In our view this will lead to further stock write-downs at the group.

“Progress on the implementation of planned price rises will also be of interest.

“We will remain cautious on the stock pending the next update,” he said.