FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of December
Commission File Number
WATERFORD WEDGWOOD PLC
(Translation of registrant's name into English)
EMBASSY HOUSE, HERBERT PARK LANE, BALLSBRIDGE,
DUBLIN 4, IRELAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X...
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
Waterford Wedgwood plc
("Waterford Wedgwood" or "The Group")
Interim Results for the six months to 30 September 2005
Summary
- Continuing operations' sales of EUR362.5 million are 11% ahead of
corresponding period last year, reflecting the acquisition of Royal Doulton
- Net loss on continuing operations of EUR94.7 million compared with EUR94.5
million last year.
- New four and a half year banking facility of EUR250 million will provide
Group with additional liquidity.
- First set of results reported under International Financial Reporting
Standards.
Business Renewal
- Fundamental restructuring under way following receipt of funds from EUR100
million rights issue and we expect that the targeted ongoing annual benefits
of EUR90 million will be realised.
- Benefits immediately evident of Royal Doulton acquisition and are likely
to exceed original expectations.
- Focussed on simplifying the Group: the number of stock keeping units
have been halved; two major factories have been closed since January 2005.
- Margins are being targeted through pricing action.
- New prestigious distribution channels, including Bed Bath & Beyond and
Linens 'n Things, mean we are reaching new customers.
- New leadership introduced throughout the Group to energise the business.
- New contemporary and innovative product ranges introduced e.g.
Waterford's Connoisseur Collection, Jasper Conran at Wedgwood, Gordon Ramsay
at Royal Doulton and Rosenthal's 'Home Designs'.
Peter Cameron, Group Chief Executive, commented:
"This is a business in transition. We knew that losses would continue, as they
have in the April-September 2005 period, but the EUR90 million restructuring
programme will change the business fundamentally.
"We are already seeing benefits from the restructuring, in particular the
acquisition of Royal Doulton earlier this year. Sales on our continuing
operations are up 11% to EUR362.5 million, compared with the same period last
year. The success of the Royal Doulton acquisition can be seen most clearly in
the Ceramics Group, with sales of EUR244.3 million, up 27% over the same period
last year.
"I am pleased to report that we have negotiated and signed a new four and a half
year banking facility of EUR250 million with a syndicate of banks lead by Bank
of America and GE. This replaces our existing banking arrangements.
"Across all our businesses we are introducing contemporary, exciting new ranges.
For example, Waterford's crystal is legendary, but we have not had a dedicated
range of stem ware for the serious wine drinker. With the new Connoisseur
Collection, we now do. This and other focussed new business initiatives to drive
profitability are all in various stages of implementation. When the benefits of
all these actions flow through, Waterford Wedgwood's turnaround will have been
effected."
12 December, 2005
Enquiries:
Waterford Wedgwood +353 (0) 1 607 0166
Peter Cameron, Chief Executive
Patrick Dowling, Chief Financial Officer
Powerscourt (UK and International Media) +44 (0) 20 7236 5615
Rory Godson
Anthony Silverman
Dennehy Associates (Irish Media) +353 (0) 1 676 4733
Michael Dennehy
Waterford Wedgwood plc
("Waterford Wedgwood" or "The Group")
Overview
With the Group restructuring, the EUR100m rights issue and full integration of
Royal Doulton, it has been a busy half-year for the Group.
First half sales of continuing operations (that is, with Royal Doulton included
this year but not in last year and All-Clad excluded in both years) at
prevailing exchange rates, are up 11% reflecting the acquisition of Royal
Doulton. However, on a like-for-like basis sales of EUR362.5 million are 7% down
on last year (that is, with Royal Doulton included in both years and All-Clad
excluded in both years, and at constant exchange rates).
Encouragingly, the dollar has strengthened in recent weeks and we have taken
advantage of this to increase our cover for next year. However, as we indicated
at the Preliminary Results in June 2005, and again at our AGM in October 2005,
the Group has faced serious challenges: a soft dollar for most of the year, weak
demand and below optimal throughput for our manufacturing operations. This has
resulted in an operating loss (before amortisation of intangibles and
exceptional items) of EUR36.8 million.
The integration of Royal Doulton has gone well and we have continued to identify
opportunities for greater savings than originally envisaged. The EUR100m rights
issue to fund the restructuring has been completed. During the past six months
we have focussed on implementing our Group-wide restructuring programme and on
right-sizing the company. We have developed new contemporary product ranges and
have entered retail channels new to our brands, but wholly compatible with them.
New leadership has been put in place in many parts of the organisation;
particularly important were the appointments of Peter Cameron as Chief Executive
of Waterford Wedgwood plc and Moira Gavin as the Chief Executive of Wedgwood.
Group restructuring
In May 2005 we announced a Group wide restructuring programme that would focus
on reducing Waterford Wedgwood's cost base, funded by a EUR100m rights issue.
The aims of the restructuring were to remove excess capacity, improve
manufacturing efficiency and enable a more complete integration of Royal Doulton
into the Group. Implementation of these radical changes is proceeding to plan
and we expect that the targeted ongoing annual benefits of EUR90 million will be
realised. These benefits will start to flow through in the second half of the
current fiscal year but it will be next year (the year to March 2007) before the
major impact is felt.
Divisional Overview
Waterford Crystal
Waterford Crystal sales of EUR99.6 million are 10% down at constant exchange
(12% down at prevailing exchange) due mainly to weak market conditions in the US
and certain supply chain constraints, now resolved.
However, Waterford has entered important new retail channels such as the US
chains, Bed Bath & Beyond and Linens 'n Things and has launched a number of
exciting product initiatives. The Connoisseur Collection is the first Waterford
range specifically targeted at the specialist wine drinker. Also new is
'Ballet', a beautiful collection of contemporary stemware, giftware and
dinnerware.
Ceramics Group
The Ceramics Group's sales of EUR244.3 million are 27% up reflecting the
acquisition of Royal Doulton. Excluding the acquisition, however, sales are 6%
down at constant exchange (7% down at prevailing exchange). This reflects
difficult retail markets in the UK, Germany and the US and some supply chain
difficulties which have now been overcome.
However, Royal Doulton brings great opportunities to the Ceramics Group, as
exemplified by the collaboration with Gordon Ramsay, probably Britain's best
known chef. Wedgwood and Rosenthal are also revitalising their businesses with
new contemporary product introductions. For example, Wedgwood has introduced a
range of dramatic new designs by Jasper Conran and Rosenthal's 'Home Designs' is
a collection of coordinated home accessories, not previously associated with the
brand.
W-C Designs and Spring
W-C Designs & Spring sales of EUR18.6 million are 13% down at constant exchange
(15% down at prevailing exchange) due mainly to weakness in the US table linens
market. W-C Designs is addressing this issue by shifting its sales mix towards
the more robust markets for bed linens and bath towels.
Financial
Operating loss
The Group reports an operating loss of EUR69.4 million compared with a loss of
EUR47.3 million for the same period last year. Excluding amortisation of
intangibles and exceptional items, the operating loss is EUR36.8 million
compared with a loss of EUR20.3 million for the same period last year. Lower
sales volumes, less than optimal throughput for our manufacturing operations and
adverse exchange account for the year-over-year change.
Exceptional Items
Exceptional items this year total a loss of EUR31.5 million compared with
EUR26.4 million last year. This year the main exceptional items are a EUR62.9
million charge for the restructuring programme offset by gains on sales of under
utilised properties. Last year's exceptional charges relate mainly to losses
taken as part of the working capital reduction programme.
Discontinued operations
Last year's accounts included a profit from discontinued operations of EUR106.8
million. This relates to the All-Clad business which was sold in July 2004. The
EUR106.8 million comprises EUR2.0 million profit after tax earned by All-Clad
before the disposal and the EUR104.8 million gain on disposal.
Cash Flow and Net Debt
Net debt, including finance lease obligations, at 30 September 2005 amounted to
EUR312.0 million (30 September 2004: EUR307.0 million). The movement in net debt
over the period primarily reflects inflows from the two rights issues and sale
of surplus property, less cash outflows as a result of trading losses and the
acquisition of Royal Doulton.
International Financial Reporting Standards ("IFRS")
These are the first interim accounts prepared under IFRS. The Group accounts had
previously been reported in accordance with accounting practice generally
accepted in the Republic of Ireland (Irish GAAP). We have today issued a
separate statement setting out the impact of transition to IFRS.
The transition to IFRS has resulted in a number of changes to the Group balance
sheet. One of the most notable impacts is the treatment of retirement benefit
obligations. Under IFRS, the Group has recognised its retirement benefit
obligations as a non-current liability on the balance sheet, which consequently
impacts on total shareholder equity. Under Irish GAAP, certain retirement
benefit obligations did not impact total shareholder equity. For the six-months
to 30 September 2005, the Group has included retirement benefit obligations
amounting to EUR293.2 million in its balance sheet, which in large part has
contributed to the total shareholder deficit of EUR123.7 million. Current
funding levels are designed to address the retirement benefits deficit.
Brands
The value of the Waterford, Wedgwood and Rosenthal brands are not included in
the balance sheet. Recently acquired brands, such as Royal Doulton, are
included.
Current trading
Current trading remains challenging and sales performance in October-November
was similar to the six months to September 30. The US dollar has strengthened
recently and we have taken advantage of this in the cover we have put in place
for next year. The second half of Fiscal 2006 should show some improvement over
the first half. However, in Fiscal 2007 the major impact of restructuring and
the new business initiatives will be realised with the objective of returning
the business to profitability in that year.
12 December, 2005
Consolidated Income Statement
6 months to
30 September 30 September
2005 2004
Note EURm EURm EURm EURm
Revenue by division - Continuing
operations
Waterford Crystal 99.6 112.9
Ceramics Group 244.3 192.4
WC Designs & Spring 18.6 21.7
------- -------
Total revenue 362.5 327.0
Operating costs (463.3) (376.4)
Other operating income 31.4 2.1
------- -------
Operating loss (69.4) (47.3)
Operating loss analysed as:
Operating loss before amortisation
of intangibles
and exceptional items (36.8) (20.3)
Exceptional items 5 (31.5) (26.4)
Amortisation of intangibles 7 (1.1) (0.6)
------- -------
(69.4) (47.3)
======= =======
Finance costs 4 (25.1) (45.5)
------- -------
Loss before income tax (94.5) (92.8)
Income tax expense (0.2) (1.7)
------- -------
Loss for the period - Continuing
operations (94.7) (94.5)
Discontinued operations
Profit for the period from
discontinued 3 - 106.8
operations ------- -------
(Loss)/profit for the period (94.7) 12.3
======= =======
(Loss)/profit attributable to:
Equity holders of the Company (97.0) 11.9
Minority interests 2.3 0.4
------- -------
(94.7) 12.3
======= =======
Loss per share continuing
operations
- - Basic (cents) 6 (2.91c) (8.03c)
- - Diluted (cents) 6 (2.91c) (8.03c)
Earnings per share discontinued
operations
- - Basic (cents) 6 - 9.04c
- - Diluted (cents) 6 - 9.04c
Total (loss)/earnings per share (2.91c) 1.01c
Consolidated Balance Sheet
As at
30 September 30 September
2005 2004
Note EURm EURm
ASSETS
Non-current assets
Property, plant and equipment 201.3 205.0
Intangible assets - goodwill and brands 7 124.8 42.9
Intangible assets - other 2.9 4.2
Financial assets 3.6 12.3
Deferred income tax assets 1.1 13.0
---------- -----------
Total non-current assets 333.7 277.4
---------- -----------
Current assets
Inventories 250.3 262.9
Trade and other receivables 127.5 119.3
Cash and cash equivalents 63.8 26.6
---------- -----------
Total current assets 441.6 408.8
---------- -----------
Total assets 775.3 686.2
========== ===========
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings (350.3) (307.3)
Finance lease obligations (23.8) (24.4)
Deferred income tax liability (11.7) -
Retirement benefit obligations (293.2) (189.5)
Other non current liabilities (7.0) (8.2)
---------- -----------
Total non current liabilities (686.0) (529.4)
---------- -----------
Current liabilities
Trade and other payables (150.4) (154.9)
Restructuring provision 8 (51.0) (3.3)
Finance lease obligations (1.7) (1.9)
Current income tax liability (7.7) (5.2)
Derivative financial instruments (2.2) -
---------- -----------
Total current liabilities (213.0) (165.3)
---------- -----------
Total liabilities (899.0) (694.7)
========== ===========
Total assets less total liabilities (123.7) (8.5)
========== ===========
EQUITY
Capital and reserves attributable to the
Company's equity holders
Equity share capital 324.1 73.5
Share premium account 203.7 213.7
Revaluation reserve 7.2 7.2
Other reserve 3.7 3.0
Cash flow hedge reserve (1.0) -
Foreign currency translation reserve (2.6) (5.7)
Retained earnings (661.6) (303.0)
---------- -----------
(126.5) (11.3)
Minority interest 2.8 2.8
---------- -----------
Total equity (123.7) (8.5)
========== ===========
Consolidated Cash Flow Statement
6 months to
30 September 30 September
2005 2004
EURm EURm
Cash flows from operating activities
Cash used in operations (102.2) (40.3)
Income tax paid - (1.4)
---------- -----------
Net cash used in operating activities (102.2) (41.7)
========== ===========
Cash flows from investing activities
Disposal of All Clad USA Inc, net of cash
disposed - 193.3
Purchase of property, plant and equipment (7.2) (5.9)
Proceeds from sale of property, plant and
equipment 30.6 3.9
Acquisition costs relating to Royal Doulton (0.8) -
---------- -----------
Net cash generated from investing activities 22.6 191.3
========== ===========
Cash flows from financing activities
Proceeds from issue of shares 101.5 -
Expenses relating to the issue of shares (2.7) -
Makewhole payments - (5.8)
Interest paid (15.7) (19.4)
Debt issue costs - (5.5)
Other finance costs (1.6) (4.4)
Proceeds from borrowings 122.3 155.9
Repayment of borrowings (80.2) (284.7)
Payment of finance lease liabilities (0.5) (0.6)
---------- -----------
Net cash generated from/(used in) financing
activities 123.1 (164.5)
========== ===========
Net increase/(decrease) in cash and cash
equivalents 43.5 (14.9)
Cash and cash equivalents at beginning of the
period 20.0 41.8
Exchange gains and losses on cash and cash
equivalents 0.3 (0.3)
---------- -----------
Cash and cash equivalents at the end of the
period 63.8 26.6
========== ===========
Reconciliation of operating loss to net cash used in operating activities
6 months to
30 September 30 September
2005 2004
EURm EURm
Operating loss before exceptional items and
amortisation of intangibles (36.8) (20.3)
Depreciation 17.3 17.9
Non-cash share based payment 0.2 0.2
Unrealised foreign exchange movements (0.3) (1.8)
Restructuring expenditure (22.4) (9.2)
---------- -----------
Loss from operations before changes in working
capital and provisions (42.0) (13.2)
Increase in inventories (23.4) (9.1)
Increase in operating receivables (17.5) (19.5)
(Decrease)/increase in operating payables (19.3) 1.5
---------- -----------
Cash used in operations (102.2) (40.3)
========== ===========
Consolidated Statement of Recognised Income and Expense
6 months to
30 September 30 September
2005 2004
EURm EURm
Items of income and expense recognised directly
within equity:
Currency translation 1.2 (5.7)
Actuarial loss on Group defined benefit
pension schemes (9.7) (29.6)
Losses relating to cash flow hedging (1.5) -
----------- ----------
Net expense recognised directly in equity (10.0) (35.3)
(Loss)/profit after tax for the financial
period (94.7) 12.3
----------- ----------
Total recognised income and expense for the
period (104.7) (23.0)
=========== ==========
Attributable to:
Equity holders of the Company (107.0) (23.3)
Minority interest 2.3 0.3
----------- ----------
Total recognised income and expense for the
period (104.7) (23.0)
=========== ==========
Consolidated Statement of Changes in Equity
6 months to
30 September 30 September
2005 2004
EURm EURm
At the beginning of the period (117.1) 14.3
Impact of adoption of IAS 39 1.2 -
----------- ----------
At beginning of period as adjusted (115.9) 14.3
Issue of Waterford Wedgwood stock units 101.5 -
Costs of issuing Waterford Wedgwood stock
units (4.8) -
Share based payment 0.2 0.2
Total recognised income and expense for the
period (104.7) (23.0)
----------- ----------
At the end of the period (123.7) (8.5)
=========== ==========
Notes
Supplementary information
1. International Financial Reporting Standards
Basis of preparation of the unaudited interim financial statements
This financial information comprises the consolidated balance sheets as of 30
September 2005 and 30 September 2004 and the related consolidated interim
statements of income and cash flows for the six months then ended of Waterford
Wedgwood plc (hereinafter referred to as "financial information").
Previously the Group prepared its audited annual financial statements and
unaudited six month results under Irish Generally Accepted Accounting Principles
(Irish GAAP). From 1 January 2005 the Group is required to present its annual
consolidated financial statements in accordance with IFRSs as adopted for use in
the European Union (EU).
This financial information has been prepared in accordance with the Listing
Rules of the Irish Stock Exchange. In preparing this financial information
management has used its best knowledge of the expected standards and
interpretations, facts and circumstances, and accounting policies that will be
applied when the Group prepares its first set of financial statements in
accordance with IFRSs as adopted for use in the EU as of 31 March 2006.
As a result, although this financial information is based on management's best
knowledge of expected standards and interpretations, and current facts and
circumstances, this may change. For example, IFRS standards and IFRIC
interpretations are subject to ongoing review and possible amendment or
interpretative guidance and therefore are still subject to change. Therefore,
until the Company prepares its first set of financial statements in accordance
with IFRSs as adopted for use in the EU, the possibility cannot be excluded that
the accompanying financial information may have to be adjusted.
The rules for first time adoption of IFRS are set out in IFRS 1 "First Time
Adoption of International Financial Reporting Standards". IFRS 1 states that a
company should use the same accounting policies in its opening IFRS balance
sheet and throughout all periods presented in its first IFRS financial
statements. In preparing this financial information, the Group has applied the
mandatory exemptions and certain of the optional exemptions from full
retrospective application of IFRS. Details of these exemptions and the group's
provisional accounting polices, the reconciliations of the Group's equity as of
1 April 2004, 30 September 2004 and 31 March 2005 and the results for the period
/year ended 30 September 2004 and 31 March 2005 reported under Irish GAAP to the
basis of preparation described in this note are included in the Group
restatement of financial information under IFRS report which is published at the
same time as this interim report and which is available on the Group's website
www.waterfordwedgwood.com and should be read in conjunction with this interim
report.
The Group has chosen not to adopt IAS 34 "Interim financial statements" in
preparing its 2005 interim statements.
2. Exchange Rates
The exchange rates used for consolidation purposes between the euro and the
principal currencies in which the Group does business were as follows:
Income statement Balance sheet as at
6 months to
30 September 30 September 30 September 30 September
2005 2004 2005 2004
U.S. Dollar $1.24 $1.21 $1.20 $1.24
Sterling GBP0.68 GBP0.67 GBP0.68 GBP0.69
Yen Y135.49 Y133.42 Y136.39 Y137.28
3. Discontinued operations
In July 2004, the Group disposed of its interest in All Clad USA Inc. The profit
from discontinued operations comprises the following:
6 months to
30 September
2004
EURm
Revenue 24.2
Operating costs (21.9)
----------
Operating profit 2.3
Finance costs (1.3)
----------
Profit before income tax 1.0
Income tax 1.0
----------
Profit after income tax 2.0
Gain on disposal 104.8
----------
Profit for the period from discontinued operations 106.8
==========
4. Finance costs
6 months to
30 September 30 September
2005 2004
EURm EURm
Loan interest and related costs 17.2 20.3
Amortisation of financing fees 2.5 2.7
Write-off of financing fees - 13.7
Makewhole payments - 5.8
Interest on pension scheme obligations 4.7 2.2
Interest element of finance leases 0.7 0.8
---------- ----------
Total finance costs 25.1 45.5
========== ==========
5. Exceptional items
The following exceptional items have been charged to the income statement:
6 months to
30 September 30 September
2005 2004
EURm EURm
Redundancy, early retirement and other
restructuring costs (55.6) (3.2)
Impairment of property, plant and equipment (7.3) -
Loss relating to working capital reduction
programme - (25.3)
Gain on disposal of property, plant and
equipment 31.4 2.1
---------- ----------
(31.5) (26.4)
========== ==========
Redundancy, early retirement and other restructuring costs
On 4 May 2005, the Group announced a restructuring programme designed to remove
excess capacity, improve manufacturing efficiency and enable the complete
integration of Royal Doulton into the Group. The restructuring programme, which
was funded by a rights issue, is expected to cost EUR90 million and is now
underway and most of the programme will be implemented by March 2006.
Impairment of property, plant and equipment
As a result of the restructuring programme announced on 4 May 2005, the
Dungarvan manufacturing facility in County Waterford, Ireland has been closed
resulting in an impairment charge of EUR7.3 million.
Gain on disposal of property, plant and equipment
On 25 May 2005, the Group announced the disposal of under-utilised land
surrounding the Waterford Crystal Sports and Social Centre which, together with
the disposal of other surplus property, plant and equipment around the Group,
gave rise to a gain on disposal of EUR31.4 million.
6. (Loss)/earnings per ordinary share
6 months to
30 September 30 September
2005 2004
Loss No. of Per share Profit/ No. of Per share
shares (loss) shares
EURm millions cents EURm millions cents
Loss for the period
before exceptional
items, write-off
of financing fees,
makewhole payments
and amortisation
of intangibles (64.4) 3,337.2 (1.93) (48.4) 1,181.6 (4.10)
Exceptional items (31.5) 3,337.2 (0.95) (26.4) 1,181.6 (2.23)
Write-off of
financing fees - 3,337.2 - (13.7) 1,181.6 (1.16)
Makewhole
payments - 3,337.2 - (5.8) 1,181.6 (0.49)
Amortisation
of intangibles (1.1) 3,337.2 (0.03) (0.6) 1,181.6 (0.05)
------- ------- ------- ------- ------- -------
Loss attributable
to equity holders
of the Company on
continuing
operations (97.0) 3,337.2 (2.91) (94.9) 1,181.6 (8.03)
------- ------- ------- ------- ------- -------
Profit attributable
to equity holders
of the Company on
discontinued
operations - 3,337.2 - 106.8 1,181.6 9.04
======= ======= ======= ======= ======= =======
7. Intangible assets - goodwill and brands
EURm
At 1 April 2005 125.2
Amortisation of brands (1.1)
Translation adjustments 0.7
---------
At 30 September 2005 124.8
=========
8. Restructuring and rationalisation provision
EURm
Balance at 1 April 2005 17.5
Additional restructuring charge 55.6
Utilised during the period (22.4)
Translation adjustments 0.3
---------
At 30 September 2005 51.0
=========
9. Net debt
Net debt at 30 September 2005 comprising interest-bearing loans and borrowings,
finance lease obligations, less cash and cash equivalents and unamortised debt
issue costs amounted to EUR312.0 million (30 September 2004: EUR307.0 million).
10. Contingent liability
In calculating the taxation creditor at the period end, the Directors have taken
into account the ability to utilise tax losses generated during the period to
offset certain trading gains. In the event that the tax losses cannot be offset,
additional taxation liabilities of up to EUR6.3 million may become payable.
Independent review report to Waterford Wedgwood plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2005 set out on pages 6 to13. We have read the
other information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.
This report, including the conclusion, has been prepared for and only for the
Company for the purpose of the Listing Rules of the Irish Stock Exchange and for
no other purpose. We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Irish Stock Exchange.
As disclosed in note 1, the next annual financial statements of the company will
be prepared in accordance with accounting standards issued by the International
Accounting Standards Board ("accounting standards") and adopted by the European
Union. This financial information has been prepared in accordance with the basis
of preparation and provisional accounting policies included in the Waterford
Wedgwood plc restatement of financial information under International Financial
Reporting Standards Report, as explained in note 1 to the financial information.
The provisional accounting policies are consistent with those that the directors
intend to use in the next annual financial statements. As explained in note 1,
there is, however, a possibility that the directors may determine that some
changes are necessary when preparing full annual financial statements for the
first time in accordance with accounting standards issued by the International
Accounting Standards Board and adopted by the European Union. The accounting
standards and the International Financial Reporting Interpretation Committee
("IFRIC") interpretations that will be applicable and adopted for use in the
European Union at 31 March 2006 are not known with certainty at the time of
preparing this interim financial information.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the Republic of Ireland. A
review consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial
data, and based thereon, assessing whether disclosed accounting policies have
been applied. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit and therefore provides a lower level of assurance.
Accordingly, we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2005.
PricewaterhouseCoopers, Chartered Accountants
Dublin
12 December 2005
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Waterford Wedgwood PLC
(Registrant)
By: Patrick Dowling
(Signature)*
Date: 12 December 2005