Personal care group IWP yesterday dismissed speculation that it was poised to sell off its loss-making Polish distribution division.
Addressing the a.g.m. in Dublin, chairman Mr Joe Moran said the group thought it prudent to keep a foothold in Poland, where it has invested almost €23 million over seven years, ahead of the anticipated opening of its economy following EU membership.
He also defended the board's rejection of a recent management buyout offer, insisting the bid of 44 cents per share did not reflect IWP's true worth. But he declined calls from the floor to state what he considered a fair offer.
Plans to appoint former Golden Vale managing director Mr Jim Murphy as new chief executive were drawn up before the buyout approach led by then deputy chief executive Mr Bernard Byrne, who resigned after the MBO was turned down, he said.
Dismissing shareholder suggestions that the board had erred in disposing of 65 per cent of its profitable British household goods operations, Mr Moran said the debts incurred by the division had been considered prohibitively high. Nor did he agree that the restructured business was too small to attract institutional investors.
Exceptional write-offs of €86 million that contributed to a €83 million pre-tax loss for the 12 months to March 2003 will not be followed by equivalent charges this year, Mr Moran insisted.
Addressing shareholders for the first time, Mr Murphy said reducing group debt was a priority but that the most important task was making IWP more market-focused and better attuned to customer needs.
As he had only been at the helm for a week, however, he was reluctant to detail his strategy for turning the business around. All motions were passed at the meeting, which follows a stormy year for IWP. The share price tumbled 9 per cent following the rejection of the MBO bid earlier this month, while a healthy annual turnover of €361 million was offset by the heavy exceptional losses, the largest a €56.2 million charge mainly attributed to the sale of the UK household subsidiary, including brands such as Jeyes and Bloo disinfectants.
Other charges included re-organising costs of €23.5 million, with the centralisation of Dutch toiletries firm Royal Sanders accounting for almost €14 million.
