Losses rise 50% at IWP as turnover takes a dive

LOSSES AT cosmetics and toiletries group IWP increased by almost 50 per cent in 2008, as turnover fell and the group incurred exceptional costs due to a reorganisation of its UK businesses.

The group, which has operations in the UK and Poland, as well as a continued interest in Jeyes Holdings, and whose brands include Constance Carroll, reported a loss before taxation of €32 million in the year ended March 31st, 2008, up from €21.5 million in 2007. Operating losses increased by 17.8 per cent to €12.6 million while turnover fell by 15.7 per cent, down to €138.3 million.

However, the group noted it had a much better year in terms of underlying profit-generation, with continuing business operating losses falling by 80 per cent to €0.9 million.

IWP moved its head office from Dublin to Skelmersdale in Lancashire in 2006. The group incurred exceptional costs of €11.8 million, which included €7.6 million spent in the UK on a reorganisation to bring its UK-based businesses to one site at Skelmersdale.

During the year, the company simplified its group finance structure with the solvent liquidation of nine redundant companies. A further five liquidations are expected by the end of 2008 which, according to IWP chairman Jason Clarke, will "significantly save on future administration costs".

Looking ahead, Mr Clarke said the firm will aim to streamline the UK business's cosmetics supply chain to reduce product costs, as well as redirecting each brand within the UK portfolio to "drive sales and profitability".

IWP expects its Polish operation will expand by up to 50 new stores per annum for the next two to three years.