Waterford Wedgwood said yesterday that it had seen some early signs of economic improvement in June and July but the outlook for the company remained uncertain.

After a very difficult April and May, June was a much better month for the company while July was its best month for some time, chairman Sir Anthony O'Reilly told shareholders at the group's annual meeting.

After falling by 10 per cent in April and May, Waterford Wedgwood sales recovered somewhat in June and July and were down just 3 per cent year-on-year.

In the critical US market, which accounts for half of group turnover, sales this month were up 9 per cent on last year's levels.

However, the company warned that the outlook remained uncertain. "Even the bravest would hesitate to make a pronouncement on the eventual out-turn for this most difficult of trading environments," Sir Anthony said.

He said the company was hoping for a good Christmas season, helped by recent tax cuts in the US which should boost consumer spending.

Meanwhile, the company is considering its options for refinancing its €357 million in debt.

Responding to a query from one shareholder, Sir Anthony said he was not contemplating a buyout of the company with family interests. But he confirmed the board was negotiating a refinancing and said it was going to try and take advantage of the current low interest-rate environment as Eircom had done with its recent bond issue.

"The bond market is at an all-time high point in its attractiveness. This is a unique period to structure very effectively long and short-term balance sheet obligations," he said.

Asked whether Waterford Wedgwood would contemplate a bond issue like Eircom's, chief executive Mr Redmond O'Donoghue said that "on a menu of things, it was one of the things being looked at".

Criticising "the destruction of shareholder value" that has seen Waterford Wedgwood reduced from a company with a market capitalisation of more than €1.1 billion to one worth just €200 million, one shareholder queried the size of the board of directors.

"There is no need to have this huge Politburo of 19 directors for a small company," he said, suggesting the board should be cut in half.

However, Mr O'Donoghue defended the composition of the board, saying, while it looked large on the platform at yesterday's meeting, each director brought meaningful skills to the group.