SALES growth and higher profit-margins have boosted pre-tax profits at Waterford Wedgwood by 24 per cent to £28.1 million.

Group sales rose by 6 per cent last year to £345 million. However, the increase was 10 per cent if the negative impact of a weaker dollar and sterling is excluded. Operating profits rose by 17.7 per cent to £33.3 million, as operating margins rose by 1 percentage point to 9.7 per cent.

After-tax profits rose 17 per cent to £24.1 million, with a similar increase in earnings per share to 3.39p. Shareholders are to benefit with a 19 per cent rise in the final dividend to 0.95p per share, giving a full net dividend of 1.2p per share for 1995, an increase of 50 per cent in the 1994 payout to shareholders.

Following a major restructuring, which has seen employment fall in Waterford and Staffordshire and strong investment in new technology, Waterford has now reported its third successive year of profits growth.

Profits in 1995 were 178 per cent up on 1993 levels. The latest outcome follows a loss of £17 million in 1992.

A breakdown of the results into the crystal and ceramic operations shows improvement in sales and operating margins at both operations, though the Wedgwood results were depressed by difficulties at Johnson, its Staffordshire-based operation.

Wedgwood sales increased by 2.6 per cent to £221.8 million. Weak sterling depressed the growth figure on translation into Irish pounds - in sterling terms sales rose by 6.6 per cent.

Wedgwood accounts for 64 per cent of group sales and produces the Wedgwood, Johnson, Mason's and Coalport brands. It operates eight manufacturing plants and employs 5,400 people.

Operating profits increased by 16.3 per cent to £17.8 million, with an improvement in the margin to 8.03 per cent from 7.08 per cent.

After rationalisation involving 945 job losses since December 1992 (75 in the past year), investment of £16 million in new technology and increased outsourcing of production, margins have improved from 4 per cent in 1993.

Some 5 per cent of Wedgwood sales were outsourced in 1995 - contracting out production to lower-cost third-party producers.

New patterns - 38 were launched in 1995 - contributed to sales growth. In Britain, sales rose by 6 per cent, boosted by a strong tourist market, and margins were stronger.

In Japan, which accounted for 22 per cent of Wedgwood turnover, sales rose by 17 per cent to £49 million. Royalties on the £19 million sales by licensees showed good growth, Wedgwood chief executive Mr Brian Patterson said.

In the difficult US market which accounted for 19 per cent of turnover, sales rose by 6 per cent and market share improved by 1.5 percentage points to 11.5 per cent, he said. Sales were boosted by the launch of new products, including Wedgwood Home.

Wedgwood jewellery sales into Japan and duty-free markets rose by 9.5 per cent to £7 million. Difficulties at Johnson, a £37 million business, have been addressed, according to Mr Patterson.

At Waterford Crystal, which" accounted for 36 per cent of group turnover, sales rose, by 12.8 per cent to £122.7 million., Stuart, acquired in mid-year, contributed £5.9 million to 1995 sales.

Operating profits increased by 19.2 per cent to £15.5 million boosting margins to 12.63 per cent from 11.95 per cent. Margins were helped by increased production efficiencies at Waterford and the outsourced production of some 23 per cent of sales.

In the US, which accounted for 69 per cent of crystal turnover, sales rose by 17 per cent against a market increase of 3 per cent. Chief executive Mr Redmond O'Donoghue said the company's share of the stemware market increased to 34.9 per cent from 29.1 per cent.

New products boosted sales. Some 82 new Waterford and 36 new, lower-price Marquis products were launched in the US market and accounted for 24 per cent of all US sales in 1995.

Worldwide sales of Marquis products, the range introduced in 1992 and produced in Slovenia, increased by 25 per cent to £15 million. Overall sales of outsourced products rose by 45 per cent to just under £30 million.

In the Irish market, which provided 17 per cent of crystal turnover, sales rose by 5 per cent compared with a 20 per cent increase in 1994. It was harder to grow from the higher level, Mr O'Donoghue said. The same applied to Britain, where sales rose 6 per cent after a 38 per cent rise in 1994.

Waterford Crystal operates five plants and employs 1,998 people. The Waterford brand accounted for, 84 per cent of sales with Marquis accounting for 11 per cent and Stuart accounting for 5 per cent.

Some £8.5 million has been invested in a new furnace in Kilbarry.

At the end of 1995, after capital investment of £27 million, acquisition costing £7 million and dividend payments of £8.8 million, the group was in a strong financial position.

Gearing (net debt to shareholders' funds) had fallen to 23.2 per cent from 27.5 per cent and operations had generated a free cash flow of £13.7 million.