Waterford agrees lucrative property deal

WATERFORD Wedgwood has agreed a joint venture with Ballymore Properties to redevelop land at its Kilbarry crystal manufacturing site.

The luxury goods maker said that the Kilbarry, Co Waterford, plant had 36 acres excess of land in a prime location and that it would generate a better return being developed.

Although it would not disclose the value of the deal with Ballymore, it is expected to make a significant return on the project.

The company said that production or staff levels at the plants will not be affected by the deal.

Ballymore, owned by Sean Mulryan, is one of the largest property development firms in Ireland and Britain.

Mr Mulryan is the main mover behind a e3 billion development in London’s docklands to rival Canary Wharf and also owns tracts of land where the 2012 Olympics will be held.

Shares in Waterford Wedgwood surged by nearly 20% yesterday after the company said that it has seen its first monthly sales rise in three years.

In a trading update to shareholders at the company’s annual general meeting in Dublin, chief executive Peter Cameron said the company has also reduced its losses and recorded an improvement in margins.

“Costs were lower and the sales decline of recent years was arrested for the first time since 2001 so that sales were in-line with the same period last year. We were particularly encouraged by September which was a strong month, especially at Waterford Crystal where sales were up 22% year-on-year in the United States, our biggest market,” Mr Cameron said.

“We remain optimistic that the improvement will continue in October.”

Speaking after the meeting Mr Cameron said that the company’s restructuring was on track with savings of €70 million this year and it on course hit its target of achieving €90m annually.

Mr Cameron said the company was encouraged by the popularity of new product ranges developed by top designers such as Marc Jacobs, Gordon Ramsey and Vera Wang.