Waterford Wedgwood sees profits jump 31%

Waterford Wedgwood, the Irish glassware and ceramics group, yesterday unveiled a 31 per cent leap in first-half pretax profits before goodwill amortisation, and said it was seeking acquisitions in the luxury goods sector.

Waterford Wedgwood, the Irish glassware and ceramics group, yesterday unveiled a 31 per cent leap in first-half pretax profits before goodwill amortisation, and said it was seeking acquisitions in the luxury goods sector.

Richard Barnes, finance director, said: "Waterford is to crystal what Gucci is to leather.... We think we have the capacity to broaden our focus and build ourselves into a luxury lifestyle goods company."

The group has already expressed an interest in bidding for Coach, the leather luggage maker which is being sold by Sara Lee, the US-based sponge cakes giant. It is also keen to acquire an upmarket watch brand. Mr Barnes said the company could comfortably afford to spend more than 200m euros (£120m) on the right purchase.

Joe Burnell, an analyst at Davy Stockbrokers, said: "They want to concentrate on the premium end of the lifestyle goods market and there is plenty of growth in that sector." Waterford's results had been "broadly in line with expectations", with sales growth exceeding forecasts.

Pre-tax profit for the six months to 30 June was 18.2m euros, up from 13.9m euros the previous year. This was before goodwill amortisation of 2.7m euros (0.5m euros in the comparative period). Turnover was up 30 per cent at 447m euros, boosted by economic recovery in Asia. There was also increased demand for the group's products in the US following a successful promotions campaign fronted by Sarah Ferguson, the former wife of the Duke of York.

Waterford revealed it had paid 10.2m euros for its recent acquisition of Hutschenreuther, a German porcelain and giftware brand. The price represented 20 per cent of the German company's 1999 sales. The deal is expected to be earnings enhancing from year one.

Dr Anthony J F O'Reilly, Waterford's chairman, said in a statement that current trading remained "buoyant". Dr O'Reilly is also chairman of Independent News & Media, the publisher of The Independent.