WEDGWOOD is making money again – two years after falling into administration with debts of £400 million.

New York-based KPS set up WWRD holdings to run the business when it bought the Wedgwood, Royal Doulton and Waterford Crystal names from administrators in March 2009.

Wedgwood had fallen into administration the previous January but chief executive Pierre de Villeméjane confirmed the business is now back in profit, although he would not reveal figures.

Mr Villeméjane, pictured, said: "We are in profit. This business was losing about £100 million the year before we acquired it. We turned it into a profitable situation from September last year.

"Sales were down in the year to the end of March. That was partly because of the general economic recession and for the first four or five months we had supply-chain issues and needed to catch up on production.

"We also exited a number of markets that weren't profitable, so they were loss-making sales.

"On a like-for-like basis this year we are looking at an 11 per cent increase."

European sales have been hit by the economic downturn and higher taxes introduced by governments desperate to cut spending, but orders from key market Japan are up 30 per cent.

KPS's buy-out followed more than 300 job losses at the Barlaston factory while it was in administration.

There are now 500 employees at WWRD split across the plant and a distribution centre in Stafford, and Mr Villeméjane paid tribute to them.

He said: "Fifteen months ago people were suspicious and understandably so, but every day that goes by we are proving that we are here to stay.

"People are proud to come here. There is a great pride and a fantastic commitment and I am ever so thankful to all the employees in Barlaston and worldwide for being so committed to the business after so many years of working in a really difficult economic environment."

In December, WWRD pledged to keep production in North Staffordshire after giving employees their first pay rise for five years.

Trade union Unity and managers agreed the one-year, three per cent increase for manufacturing and warehouse staff.

Garry Oakes, assistant general secretary at Unity, said today: "We were pleased to get any part of Wedgwood saved, for the people who work there and for the city. Mr Villeméjane talks with passion about what he wants to do with Wedgwood and how he wants to grow it."

Read our full Wedgwood interview