Qualceram profits up 60% to €5.7m

BATHROOM fixtures maker Qualceram Shires said pre-tax profits were up 60% last year helped by the sale of property in Britain.

Arklow-based Qualceram said profits for 2004 were €5.7 million. This includes the €3.3m profit on the disposal of land at its manufacturing site in Henley. At operating level, profits were up from €3.3m to €4.9m.

While 2004 was a much better year for the group and the Irish market has been “stable” this year, it said the British market continues to be challenging.

Qualceram said it is carrying out a review of its entire business to see if further costs can be taken out of the business. It said this may lead to a one-off restructuring cost this year.

“The group delivered a strong performance in 2004, demonstrating the good progress made in recent years. These results were achieved in the face of factors outside our control, including stiff price competition from Asia, a weakening British housing market and rising energy and utility costs.

“To ensure that we can compete more effectively and profitably in our marketplace we have initiated an extensive group wide review of the supply chain,” chief executive John O’Loughlin said yesterday.

Turnover for the year grew by 4% to €98.2m, with the increase coming from its British operations. Turnover here was up from €49.4m to €51.2m.

Sales in Ireland were up from €40m in 2003 to €41.6m.

Shareholders will see the dividend rise from 5.25 cents per share to 5.75c. The dividend will be paid out of adjusted earnings per share of 14.11c.

Shares in Qualceram, which had plunged last December when the company said trading in Britain was tough, closed at €1.30 on the Irish market yesterday, flat on the day.