IWP results reveal company overhaul

ISEQ-listed consumer care product company IWP has announced a group operating profit (before goodwill of €600,000) of €4m, up 60% from 2003's €2.5m.

The results include a pre-tax net exceptional charge of €11.4m, due to factors including the sale of the company's Canadian business and net asset write-downs.

In the results announced today, IWP said group net debt had been reduced by €20m to €77.1m.

Sales revenue was down by €22.2m due to an adverse exchange conversion and the cessation of the loss-making Michael Harvey product range, IWP said this morning. Other factors in the decline in sales revenue were a fall in wholesale sales in Poland offset by growth in fragrance brands, gifts and sales through the Drogerie Natura retail outlets.

The household division was disposed of in September 2002 though the group continues to hold an equity and bond investment in the business. Both the Skiffy Group (a plastics and metal components business) and Siderius (a small soap manufacturing business) were sold in March 2004.

The closure process is now almost complete in IWP's Canadian operation.

CEO Jim Murphy said: "This has been a very difficult and challenging period for the group. The

improvement in operating profit and reduction in debt is encouraging and the various actions taken over recent months should enable us to significantly grow operating profit in the coming year".

The company disposed of the non-core Skiffy Group and Siderius businesses in the last business year.