Waterford Wedgwood reels after new trading blow

Crystal and china maker Waterford Wedgwood today said poor trading over Christmas left it facing bigger than expected full year losses.

The group – best known for Wedgwood pottery, Royal Doulton and Waterford crystal – said delays in securing a multi-million pound financing package disrupted its supply chain in the run up to Christmas.

Sales were 3% lower at €211.2m in the final three months of the calendar year, dashing hopes it will deliver underlying earnings growth in the year to March 31.

The company has already announced bottom-line losses of €57.5m for the six months to September 30, following on from the deficit of €70.8m seen across the previous financial year.

The supply problems hit sales of globally-sourced figurines worst, with the performance of its own factory crystal and dinner services faring better.

Waterford’s warning is the latest blow from the firm, which has axed more than 2,200 jobs over the past two years and announced factory closures in the UK, Ireland and Europe.

As part of continued restructuring, Waterford will cut another 311 jobs at its Rosenthal operation in Germany over the course of the year.

That will leave it with around 6,100 staff – 2,000 of whom are in the UK. Around 1,000 are employed at its base in Barlaston, near Stoke-on-Trent.

The delayed funding package saw the group receive a €57m injection in December – some eight months after the share offer was first made. A total of €50m came from a New York private equity firm, with another seven million from chairman Tony O’Reilly and his deputy.

Waterford said: “The delayed receipt of funding impeded the group’s ability to manufacture, source and distribute product in time for the all important Christmas trading period.”

Anthony Jones, chief financial officer, said: “The group has created a product portfolio which is in high demand and it is frustrating for management to report to shareholders that thus far sales and profits have not shown the commensurate improvement.

“There are a number of distinct opportunities to improve shareholder value that should be addressed with urgency.”