Waterford announces rights issue

Waterford has been hit by a slump in demand for luxury goods

Luxury goods group Waterford Wedgwood has unveiled a refinancing programme aimed at paying off its debts.

The Irish company, best known for its glass crystalware and pottery, announced a 3-for-11 rights issue to raise around 35m euros (£24m; $41m).

Waterford said the fully underwritten offer had been priced at 18 cents and 213m new shares would be issued.

The news came as Waterford posted a slight drop in first-half sales, down 3.7% to 405.8m euros (£284m).

Demand hit

Operating profits for the period came in at 4.2m euros, down from 40.6m euros in the previous year.

The company has been hit hard by a slump in demand for luxury goods - exacerbated by the Sars outbreak and the war in Iraq.

However, it said sales had picked up in September and October, pointing to a stronger Christmas season.

Waterford said the rights issue was conditional on the successful completion of a 165m euro high-yield bond.

The bond proceeds would be used to pay off existing debt, the company said.