The UK“s china and crystal glassmaker Royal Doulton reported a dramatic swing into loss for the six months to 30 June 1999, as it counted the cost of lower sales, reduced stock levels, factory closur…
The UK“s china and crystal glassmaker Royal Doulton reported a dramatic swing into loss for the six months to 30 June 1999, as it counted the cost of lower sales, reduced stock levels, factory closures and job cuts. The group posted a pre-tax loss of UK 14.4 million, compared with a pre-tax profit of UK 2.7 million for the same six month period in 1998. Royal Doulton sales amounted to UK 90.3 million, 16% lower than the same six months last year, as it reduced sales made through cut price discount retailers and as competition grew. The company also cut its workforce by 20% to 6,000 in the six month period and reduced gross stocks by UK 16.6 million. Royal Doulton warned it expects the trend of lower sales to continue for the remainder of the year. The group expects second half trading to be better than break-even at operating level, although profitability at year end will depend on trading over the critical Christmas period. Royal Doulton, whose brands include the world renowned Royal Crown Derby, Minton and Royal Albert, announced a major restructuring in December 1998 with the loss of 1,200 jobs. In August, the group said it was raising some UK 31 million through a new share placing at a price of 115 pence per share.