WATERFORD Wedgwood has become the first major Irish public company to hold its annual general meeting outside the State, drawing an attendance well over 200 in London yesterday.
Shareholders packed in to the appropriately plush Four Seasons Hotel to hear chairman, Dr Tony O'Reilly, outline his plan to turn Waterford Wedgwood into one of the world's lending prestige giftware companies.
The decision to hold the meeting in London was "a mark of our confidence as a truly international company" he said. More than 7,000 of Waterford Wedgwood's 19,000 shareholders are resident in Britain.
Waterford Wedgwood has made major strides, Dr O'Reilly told shareholders, reporting pre tax profits up 24 per cent last year to £21.8 million and sharply lowering its debt. The group must still improve its return on sales, now 7 per cent, he said. Part of his chairman's challenge to group management is to achieve a 15 per cent return by the year 2000.
With group products displayed prominently around the hall, shareholders were shown a video outlining the company's achievements in its major markets. Then, as Dr O'Reilly spoke of the potential of the group's brands, another video featured "winners" from the world of sport and the arts such as Riverdance, Eric Cantona and swimmer Michelle Smith.
Waterford Wedgwood brands were, like Nick Faldo, "destined to win", said Dr O'Reilly. "We will not, I promise, be a Greg Norman and out at the last hole."
Even dissident shareholder, Neal Duggan, appeared for a moment to be caught up in the positive mood, congratulating the board on the meeting in London. However, soon embarked on a long list of questions challenging both the performance and the renumeration paid to its directors.
During some tense exchanges, Dr O'Reilly defended the recent growth of the company, which he said had seen underlying sales rise by 10 per cent last year when exchange rate variations were netted out. Mr Duggan was assured that none of the directors were in receipt of consultancy fees from the company.
Dr O'Reilly told Mr Duggan that 23 per cent of Waterford's production was currently sourced from factories in Europe, while between 6 and 7 per cent of Wedgwood production is outsourced.
Speaking after the meeting, Dr O'Reilly said that the US should be the major growth market for Waterford Wedgwood brands. There was also considerable potential to boost Wedgwood sales in Japan and Britain, he said. He has asked group management to boost sales from almost £400 million last year to £600 million by the year 2000.
More Irish companies would have to consider holding annual meetings in London to encourage the development of a British shareholder base, according to Dr O'Reilly. Waterford Wedgwood's board is now considering alternating the meetings between Ireland and Britain.
