IWP said it would provide more details on the reorganisation when it released interim results on December 9th.

Shares in IWP International lost a third of their value yesterday as the market reacted negatively to news of problems in its Dutch business. The shares plunged by 27 cents, or 33 per cent, to €0.54, a day after the personal care company warned that a restructuring of its Dutch business would adversely affect short-term profits and give rise to once-off reorganisation costs in the current fiscal year.

Dealers said the market was disappointed not just with the news but with the way it was announced. "There was a market backlash because of the way they did it," one trader said. "It was tacked onto the end of a statement of appointments."

IWP referred to the Dutch problems at the bottom of a statement announcing the appointment of Mr Robin Isacson as managing director of the Dutch business, Royal Sanders.

"Following Robin Isacson's appointment, the Dutch business is undergoing a very significant transition which will adversely affect short-term profits as well as giving rise to a one-off reorganisation cost in the year to March 31st, 2003," it said.

Goodbody, which acts as broker to the company, estimates that in the year to the end of March, 2002, the Dutch business made an operating profit of €3-€4 million.