Troubled household goods group IWP has reported a pretax loss of €4.8 million in the six months to the end of September and says its year-end performance will be in-line with market expectations.
The group posted a similar performance in the same period last year and said that €2.9 million in exceptional costs, largely made up of fees for legal and financial advice related to IWP's restructuring, added to its losses.
The group, which has agreed with its principal creditor on a financial restructuring, said it would ask shareholders to approve its de-listing in 2006.
It said the restructuring included the conversion of creditors' €56 million in existing debt into a 90 per cent equity holding of its enlarged share capital.
Shareholders will be offered an option to cash-out of IWP at a price of 3.5 cent per ordinary share. Those who wish to remain shareholders will see their stakes cut by 90 per cent. IWP shares closed one cent lower at 3 cent in Dublin yesterday.
IWP finance director Paul O'Brien said the company was working towards issuing a circular to shareholders by mid-February with a view to holding an extraordinary general meeting in March. IWP wants to de-list by the end of March and if it succeeds, yesterday's figures will be the last released to the market.
IWP had intended to report its financial performance in January but brought the announcement forward to avoid having to adopt the international financial reporting standards (IFRS) that apply from next year, it said.
During the six months, its sales increased marginally to €91.4 million, allowing it to maintain operating profits for that period.
Sales growth at its Polish retail business was partially offset by lower sales elsewhere. Mr O'Brien said while IWP's trading performance was flat, it was a reasonable outcome in the current environment.
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