Waterford Wedgwood has appointed Bank of Ireland's former finance director, Mr Paul D'Alton, as its new chief financial officer.

He will replace Mr Richard Barnes who has decided to step down after more than 10 years as head of the company's finances, according to Waterford Wedgwood.

Mr Barnes, who is 55, will remain as a consultant to the company.

He also plans to expand his public service commitments in Britain's west midlands, where he is based.

Mr D'Alton, who will join Waterford Wedgwood on May 4th, served as chief financial officer at Bank of Ireland for 10 years and previously held the chief financial officer position at Aer Lingus.

More recently, he led the independent directors at Riverdeep during the management buyout negotiations last year.

He takes over the finance function at Waterford Wedgwood following a particularly difficult time for the company.

Demand for its luxury goods has been hit by the global downturn, forcing the company to shed almost one-third of its workforce, or 3,000 people, over the past two years.

Operating profits in the six months to the end of September plunged by 90 per cent to €4.2 million, hit by the war in Iraq, the SARS epidemic and dollar weakness.

The company also ran into trouble last year over its high debt levels, resulting in a suspension of its banking covenants. It has since undertaken a major refinancing, including a €38.5 million rights issue and a €165 million bond offering.

Analysts said the appointment of Mr D'Alton should be good news for the company's share price.

"It should be a boost," one analyst said. "He is well respected and well known in Dublin and has a good reputation."

Shares in Waterford Wedgwood closed at €0.24 yesterday, up one cent or 3.5 per cent on the day.