Bathroom products maker Qualceram Shires says the group's trading performance has been adversely affected by the 'unprecedented' slowdown in the property market and the deepening economic downturn in Ireland and the UK.
In an interim management statement, the group says that revenues in the first six months of the year were 28% behind revenues in the first half of last year and that it expects to report a loss for 2008.
It added that since it reported its half yearly results, conditions have actually deteriorated and revenue in its markets are down 33% in the four months to October.
Qualceram Shires says that it has continued to reduce its cost base and it has reduced its workforce by 33 since June.
The company said that the economic conditions in its main markets continue to be challenging and trading in November to date has shown no sign of improvement.
'This is exacerbated by the tightening of the availability of credit,' the statement says. It adds that it does not see a recovery in the Irish and UK housing markets for next year.
'Whilst we welcome the interest rate reductions announced last week in our key markets, and are hopeful that if these are passed on to consumers it will help to stabilise the market, the group expects to report a loss for 2008,' it said.
