Bathroom products maker Qualceram Shires has repeated that market conditions in Ireland and the UK remain challenging and that its half yearly results will be affected as a result.
In its first interim management statement, the company said that a much lower level of housing starts along with the weaker economic climates in both Ireland and the UK had materially impacted on sales of its bathroom products.
'A reduction in the number of operation days as a result of the Easter holidays also had an impact on trading,' said.
The company said that group turnover in the first quarter of 2008 had declined by about 30% on the same time last year. It added that this takes into account a 13% fall in the sterling euro exchange rate, which has an associated impact on trading results.
It added that current trading has followed the first pattern of the first quarter and Qualceram Shires says it expects group turnover for the half year to the end of June to decline by about 30 percentage points compared to the first half of 2007.
Qualceram Shires said that to counteract the contraction in its markets, the company is looking to develop new business in areas where it has not had a major presence. To this end, the company is set to develop in the DIY sector and other retail areas in the second half of 2008.
The company also said that it is taking advantage of demand for its products in niche export markets. 'The board expects this business to grow significantly as a contributor to group profits in 2008 and future years,' it added.
In March, the group said it had received an unsolicited approach that may or may not lead to an offer for it. In its trading update today, Qualceram Shires said it has undertaken a process to evaluate that initial approach. That process is ongoing, it added.
