More than 1,000 people lost their jobs during restructuring

Sales for the first half of the financial year were �58m, falling from a figure of �69.7m.

The firm, which produces tableware, said a shake-up of the business in 2002 had paid off, with operating losses for the first half of the year falling to �7m from nearly �8m before.

Royal Doulton, which is based in Stoke-on-Trent, said the restructuring, which included 1,100 job cuts and the closure of two factories and 42 shops, had improved the stability of the business.

But chairman Hamish Grossart has warned that improvements were needed if the group was to achieve its targets.

The 200-year-old group, founded by Sir Henry Doulton, employs 3,600 staff and has 356 shops worldwide.

It has been battling to reduce costs and improve in the face of stiff competition from overseas producers who have lower costs.

The group has increasingly moved its manufacturing abroad, and moved production of its Royal Albert range to Indonesia last year.

It now has just one UK factory in Stoke-on-Trent.