Qualceram cleans up with dividend

QUALCERAM Shires signalled its confidence in a return to growth by restoring its interim dividend.

The company, which manufactures bathroom suites, said it would pay shareholders an interim dividend of two cents per share.

The Arklow-based firm yesterday reporting a small rise in pre-tax profits for the six months to end June of €3 million.

Profits were helped by lower interest payments on the group’ debt, improvement sales margins and a lower tax bill.

Turnover was ahead by 8% at €52.9 million with strong growth in the Britain and Irish markets.

Sales in Britain, which now account for more than half of the total, were up from €25.9m to €27.7m, while the Irish side of the business saw revenues rise by €2m to €22.2m.

The company’s chief executive John O’Loughlin said yesterday the company had not fully integrated the Shires business, which it acquired four years ago. It began a restructuring programme that saw a manufacturing plant in Britain close down and sold off. The sale will raise about €6m for the company before costs.

“We’ve had a difficult period bedding in Shires but you are seeing the benefits of the acquisition now,” Mr O’Loughlin said.

Brokers were generally positive about the company’s outlook yesterday. Davy Stockbrokers said in a report: “The interim results put Qualceram Shires in a good position to meet full-year targets.

"However, pricing pressures are increasing and energy costs are rising. Given these issues, we are not changing our full-year forecasts.”

Mr O’Loughlin added that since the half year end in June sales have continued to remain robust.

He said sales in Ireland will benefit over the next few years from the release of funds held in special savings incentive accounts (SSIAs), with some of this money expected to be spent on home improvements.