The ceramics company has recorded improved sales, with operating profits of �11.2m for the three months to the end of September.

That compares with losses of �8.3m a year earlier.

Wedgwood announced in June it was transferring the production of its lower-priced Johnson Brothers branded earthenware from Stoke-on-Trent to factories in Asia, with the loss of more than 1,000 jobs.

Market optimism

Workers passed through the gates of Wedgwood's Alexandra factory in Tunstall, Stoke-on-Trent, for the last time in October.

The Eagle factory in Hanley is due to close in December.

The company said it was "greatly encouraged" by the latest set of figures.

Chairman Sir Anthony Reilly said the end to the Iraq war and Sars crisis in Asia had brought optimism to the market.

He said: "We are definitely beginning to see a bounce come back into the consumer's step - particularly in our important US and Japanese markets."