SIR ANTHONY O'Reilly and his brother-in-law Peter Goulandris are preparing to provide an additional €60 million to Waterford Wedgewood as part of a €120 million equity-raising deal but they are unlikely to underwrite the issue, the firm's fifth since 2003.

This represents a departure from recent practice as the two billionaires, whose latest funding will bring their total investment in Waterford to some €400 million, have underwritten the bulk of the previous equity-raising deals at the loss-making company.

"I don't think they will and I don't think they should. The point is this company has to stand on its own two feet. We cannot rely on Tony O'Reilly and Peter Goulandris always being there," said chief financial officer Anthony Jones.

The company, which includes brands such as Waterford Crystal and Royal Doulton, plans to complete the elimination of 522 jobs at its plant in Kilbarry, Co Waterford, by the end of the fiscal year.

Some 112 staff left in July and a similar number are leaving this month. Another 120 left in earlier months.

Having failed to secure Government support for guarantees on loans of up to €39 million to fund the restructuring scheme, the firm has reduced the upfront cost of the redundancy package to less than €10 million by staggering severance payments.

Asked if there was any threat to the remaining 568 jobs at the plant, Mr Jones said "there are no plans at this stage to do anything else". However given the current economic climate, he said he could not give any guarantees.

Unveiling a "hugely disappointing" set of annual results which saw Waterford's pre-tax loss rise to €241.6 million in the year to April from €70.8 million in the previous period, Mr Jones said the identity of the underwriters and structure of the new fund-raising initiative are still undecided.

Waterford hopes to raise the first tranche of the new equity by the end of September and the remainder by the end of December, Mr Jones said.

The money raised will be used to implement the reform plan in the company. "We certainly do not want to go back and do it all over again. We certainly do not want to be talking about the sixth equity raising," Mr Jones added.

Corporate Partners, a private equity fund managed by a unit of investment bank Lazard, will subscribe to its pro-rata entitlement of roughly 10 per cent of the issue.

He expressed confidence that the firm would be able to secure subscription commitments from new investors if the company's other shareholders do not take up the issue.

"We have to sell the equity. We have to go full steam ahead with the equity presentation and get the story out there."

Waterford has raised a total of €775 million since 2003 through share placings, a bond issue and asset disposals. Thus the latest equity-raising and the likely sale of its German porcelain subsidiary Rosenthal, which could fetch some €120 million, will bring the amount of money raised in five years to more than €1 billion.

Shares in the heavily-indebted firm, which traded at 3.7 cent a year ago, closed unchanged last night at 0.6 of one cent, a level that implies a market capitalisation of €32.13 million.

The loss per share for the year rose to 4.32 cent from 1.41 cent.

Revenues at prevailing exchange rates dropped 9.4 per cent to €671.8 million and there was an operating loss of €155.8 million, after €124 million in exceptional charges.

Interim chief executive David Sculley, who took the top seat after the departure of Peter Cameron in April, has been appointed on a permanent basis.

Waterford's latest annual report, published simultaneously with the financial results, shows that Mr Cameron received €800,000 in compensation for loss of office.

As per his employment contract, this represents his continued payment of an annual salary of $500,000 (€321,435) to Mr Cameron until October 2009 and "other benefits".

Mr Jones, appointed last November, said the new management team has made a "quick win" cost saving by closing the company's office in Dublin and a retail outlet at Regent Street in London, ahead of a fundamental reorganisation.

Revenues were flat in the first three months of the fiscal year at €135.7 million. Wedgwood sales rose 9 per cent, Waterford Crystal sales fell 2 per cent, Rosenthal sales rose 4 per cent and Royal Doulton sales fell 12 per cent.

WATERFORD WEDGEWOOD RESULTS

Turnover -€671.8 million (-9.4%)

Pre-tax loss -241.6 million (+241%)

Loss per share -4.32 cent (+206%)