Ceramic bathroom products maker Qualceram Shires has reported an operating profit on continuing operations of €11.4 million for the year ending December 2001 - up 115% on the previous year.
2001 was the first year where the results of Shires and Shires Ireland were fully consolidated into those of the wider group. This produced an increase in turnover of 137% to €99 million. Basic earnings per share rose to 8.93 cent, compared to 8.34 cent in 2002.
'Qualceram Shires has achieved significant progress in a challenging environment, particularly in the second half of 2001,' John O'Loughlin, Chief Executive of Qualceram Shires said.
'We have also succeeded in achieving cost efficiencies and increased competitiveness across the group. We are confident that a continued focus on cost reduction, combined with a more aggressive approach in the UK market will drive growth for the group going forward,' he added
The company said that while there was a definite decline in new house starts in Ireland in the second half of 2001, the changes in the December budget should result in an improvement in the second half of 2002.
The pessimism prevalent following the September 11 attacks in the US has now given way to cautious optimism, the company said. Against this background, it predicted growth in the renovation sector, albeit at more modest levels than previously recorded.
The UK brands of Shires did not perform as strongly as anticipated in the second half of 2001 and 'decisive action' has been taken by the Group to correct this. Qualceram predicts that all its group brands will grow in the UK this year.
The company said that trading in all markets continues to be positive, with its performance in January and February of 2002 encouraging.
'New product development, a more aggressive approach in the UK market and a streamlined operations will deliver sales growth in the future,' the company said in today's results statement.
