IWP reports drop in sales
IWP, the troubled personal care group, today reported a fall in sales of 11% and an increase in net debt of 14.3%.
The interim results for the six months to the end of September showed that turnover fell from €112.2m in the same period last year to €99.6m and that group net debt rose to €107.2m from €92.6.
The firm's operating profit, before goodwill and exceptional items, rose 26%, while its operating
margin was up from 3% to 4.3%.
The company said the decline in revenue was led by adverse exchange rates, an exceptional charge at the start of the year of €5.4m and compensation for loss of office to executives.
In a statement CEO Jim Murphy said: "In spite of the difficult circumstances outlined in this statement,
the group is trading profitably and is capable of growth in the future".
Murphy said he was committed to reducing the company's large debt levels and that the group's main objectives were to conclude discussions with its banks and loan note holders in order to provide a stable financial framework within which to manage the group and grow earnings.
Former Golden Vale boss Jim Murphy was appointed CEO of the group in October this year following the IWP board's rejection of a takeover offer from a team led by then deputy CEO Bernard Byrne.
