Dempsey discusses future at Waterford

MR Michael Dempsey, the finance director of Waterford Foods, is believed to be discussing his future at the group with other members of senior management.

Mr Dempsey is not believed to have been present at the company's headquarters in Dungarvan since late last week.

A spokesman for Waterford Foods said the company would make no comment on the issue. Mr Dempsey could not be contacted for comment.

Mr Dempsey is a director on the Waterford Foods plc board and as finance director is one of the company's senior executives. He is not believed to have attended last Friday's board meeting at which the plc board discussed the proposals from Avonmore Foods for a merger with Waterford Foods.

It is understood that discussions have taken place between legal representatives of the company and representatives of Mr Dempsey.

Mr Dempsey was promoted to be a main board director of Waterford Foods in February 1994, along with Mr Matt Walsh, the current chief executive. Previously Mr Dempsey had been financial controller and later assistant chief executive finance.

Last month, Waterford Foods issued a surprise profit warning to the markets, in which it cautioned that its results for last year would be worse than market forecasts. Subsequently, it became clear that the company was renegotiating some of its bank facilities. It has subsequently said that these were successfully renewed.

Mr Walsh, in a statement issued days after the profits warning, said that it had not arisen due to disagreements with its auditors, KPMG.

He said that as Waterford was preparing its accounts "certain assumptions and estimates were reviewed by management and discussed with the auditors, as a result of which the board informed the market that the 1996 profit before taxation would be not less than £19.7 million. I wish to emphasise that there is no difference of view between the company and its auditors."

But the statement from Mr Walsh did not satisfy the markets, with analysts continuing to express disquiet about the late issuance of the profits warning.

Waterford Foods finally announced its 1996 results last Friday, revealing pre tax profits of £19.8 million, a drop of almost 21 per cent. Because of the Avonmore bid, management has not been available to discuss the results. Mr Walsh said, in a statement, that the results were "clearly unsatisfactory. A combination of high relative milk prices and market developments caused unprecedented pressures and challenges for the group."