Major changes could be in the offing at ceramic materials group Beauford in the wake of a plunge into the red.
The owner of Wade Ceramics at Burslem and Milton-based Allied Insulators today reported a £1.4 million loss in the first half of 1998.That compares with a pre-tax profit of £303,000 during the same period of 1997.

Chairman Sir Trevor Holdsworth told investors: ‘‘Our management plans remain closely focused upon improving margins and squeezing overheads. In addition, the board is considering a variety of strategic options to return the group to a more secure financial footing and enhance shareholder value.’’

Earlier this year, Beauford dismissed reports it was putting itself up for sale. It also announced more than 100 redundancies spread across both Wade and Allied Insulators.

Beauford saw a 25 per cent increase in sales in the first half of the year to £16.53 million (1997: £13.26 million). But the firm said this was due to its acquisition at the end of 1997 of Allied Insulators from the Fairey Group.

‘‘Comparable turnover from existing operations actually fell by 15 per cent,’’ said Sir Trevor. This was due to a more than halving in sales of the whisky decanters made by Wade.

Across the Beauford Group, it has axed more than one in six jobs – at a cost of £1,108,000. The downturn in trading has severely affected the firm’s cashflow. Gearing has leapt from 53 per cent to 83 per cent.

Sir Trevor said: ‘‘The management actions are expected to result in a more stable cash outlook for the second half of the year.’’

Many of the problems seen at Beauford are a reflection of what is happening elsewhere in the pottery industry, said Sir Trevor. ‘‘‘We are experiencing uncertain order intake patterns as most of our customers are experiencing varying degrees of downturn in their market.’’

There are some encouraging signs, though. Not least, there has been a substantial rise in sales at Wade’s International Collectors’ Club.

Problems in Asia have also affected Wedgwood, which also published its interim results today.
As reported elsewhere in today’s Sentinel, first half operating profits at Wedgwood were down by 14 per cent to about £4.2 million.