Qualceram Shires’ sales down on 2004

Ian Guider

At the company’s annual general meeting yesterday, chairman Peter Addison said sales in the first five months of 2005 had been hit by tough conditions in the British market and were down on the same period last year. “Consumer demand continues to weaken in the UK and this, coupled with competitive pricing pressures, has affected the bathroom industry in general. However, remedial action already taken by the group will help to offset the impact of some of the negative factors.”

Last month the company announced it was ceasing some production at its manufacturing plant at Longton in England with the loss of 220 jobs. Mr Addison told shareholders: “In the UK market, the flexibility to adapt to a changing market remains the primary focus for the group. The consultation process in relation to the group’s production facility at Longton has been completed, and the redundancy programme is expected to be completed by the end of August 2005. In the Irish market, the business continues to perform well across all brands.”

Restructuring the Longton facility will cost in the region of E6m this year, but should result in savings of E2.5m from 2006 onwards.

“Whilst it is anticipated that sales in the first half of 2005 will be below the corresponding period in 2004, it is expected that the second half of the year will be stronger than the first half, with measures now in place to improve our cost base.”