Waterford explains share issue plans

WATERFORD Wedgwood Plc, the crystal maker controlled by billionaire Tony O’Reilly, said annual earnings are broadly in line with managers’ expectations and gave details of a share sale.

A recovery in the company’s financial performance is achievable, the company said yesterday.

Waterford plans to raise €153.7 million before costs through an open offer. Waterford first said in August that it planned to sell shares.

Chief executive David Sculley said: “This equity issue is a crucial funding designed to facilitate the implementation of the 2008 cost restructuring programme and to help to position the group to unlock the potential of its world-renowned brands.

“The 2008 equity issue will also secure compliance by the group with its facility agreement.”

Mr Sculley said that in the short term the completion of the open Offer and the continued commitment of Tony O’Reilly, Peter John Goulandris and Corporate Partners provides the required liquidity to the Group during the key pre-Christmas 2008 trading period, thereby avoiding the material negative impact to the supply chain and consequently to sales and gross margins which would otherwise be likely to occur.