Shareholders clear the air with O'Reilly

WATERFORD WEDGWOOD annual meetings are glossy, high quality affairs when the faithful who have weathered the company's fortunes from the bad times of a decade ago to the good times of the past few years and are staying with it through the rocky road ahead.

It is the day when 500 ex-employees and small shareholders get their own audience with the kingpin of Irish business, Dr Tony O’Reilly.

There may have been 18 other members of the board at the “top table” running across the majestic round room in Dublin’s Mansion House, but there’s really only one star of the show.

Dr O’Reilly is just “Tony” to the audience of mostly senior citizens who came to listen and have their say.

Unfortunately, it was not all plain sailing. Dr Tony gave a review of the year and the chief executive spoke about the challenges of the year ahead, but after the glossy video of expensive china in locations around the world, the floor was given to the ordinary shareholders to have their say.

Waterford Wedgwood’s dwindling share price was unsurprisingly the main issue preoccupying shareholders yesterday and its acrimonious association with the British Royal Doulton group was also mentioned. One man asked why Waterford Wedgwood had acquired a 14.9% share in Royal Doulton when its share price then plummeted from 90p to 12p after a three-for-one rights issue. “We’re chasing something we don’t really need,” he added.

Dr Tony replied that they hadn’t let the price fall, it had dropped itself. He said the view of Royal Doulton’s chairman was that English fine bone china could be out-sourced in Indonesia and that was not a view with which they agreed and that they would prefer to use the spare capacity of Wedgwood to manufacture Royal Doulton.

Other questions were more specific. “Which city in Japan is Waterford Wedgwood based in,” asked one woman. “Every city,” replied O’Reilly. “But is it in Kyoto?” the woman pressed on. “Yes. Kyoto, Tokyo, Osaka...” “That’s enough,” said the woman as she sat back down again and passed on the microphone.

As Dr Tony attempted to wind up the Q&A session, one man, egged on by those around him stood up to make a point for Waterford Crystal workers. John, now retired, wanted a commitment that Waterford Crystal would remain in the city which gives it its name.

“I remember an AGM ten years ago when the reception was very hostile. It felt as though the company was going nowhere but the workers got behind Waterford Crystal and I don’t believe that effort has been recognised by the top table,” he said.

In a careful reply, Dr Tony emphasised the contribution of the workers but stopped short of giving an explicit commitment not to begin outsourcing the manufacturing of Waterford Crystal.

After the questions, the formality of passing the various resolutions to re-elect directors were put to the room but Dr Tony’s remark that there was a 99.9% proxy vote already in favour, drew boos from the crowd as the reality of the powerlessness of their holding in the company was brought home.