WATERFORD Wedgwood must position itself as an international giftware company, with at least 30 per cent of the stock held in the United States, the company's chairman, Dr Tony O'Reilly, said yesterday. Speaking after the annual general meeting, he said the company planned to extend the Waterford and Wedgwood brand names with new products.
This is going to be a giftware company, not a stemware company or a plate company, Dr O'Reilly said.
He told the annual general meeting in Dublin that he believed the value of the shares would rise if more stock was held in the US, particularly by large pension funds.
"Our view is that we have this megabrand in Waterford - and in Wedgwood - in the US, yet there is very small US participation on our share register," Dr O'Reilly added.
Currently, just 10 per cent of the firm was American controlled, he said.
In September, the board of the company will meet in New York and this will be followed by a presentation about the company to several major institutional investors.
Dr O'Reilly said the company's 1996 results, which saw sales up 9.2 per cent to £376 million and pretax profits rise by 24 per cent to £35 million, illustrated robust financial progress.
He confirmed to shareholders that on the completion of the rights issue process by the leading German ceramics manufacturer Rosenthal, Waterford Wedgwood owned approximately 25 per cent of the company and had options over a further 13.6 per cent of the enlarged equity.
A video shown at the meeting showed a variety of "brand extensions", including Wedgwood linens, jewellery, leather goods and gourmet foods and Waterford linens, lighting and writing instruments.
Later this month, Waterford will present a new range of crystalware created by fashion designer John Rocha, targeting younger consumers.
Among the motions to be voted on during the meeting was one allowing the board to hold next year's annual meeting in Britain. Last year, for the first time, the meeting was held in London. It was suggested then that the company would rotate the annual meeting between Ireland and Britain.
Led by shareholder Mr Neal Duggan, many members objected to this measure, arguing that the distance made it impossible for them to attend. Eventually the motion was passed, after Dr O'Reilly assured shareholders that if next year's meeting was to be held in London, it would be linked by teleconference to a gathering in Dublin.
