Shares in bathroom suite maker Qualceram Shires plunged almost 20 per cent yesterday, down 25 cents to €1.05, after the company blamed the slowdown in the housing market for yet another profit warning.
In a statement to the stock exchange, Qualceram said full-year pretax profit would be in the region of €2.4 million, 38 per cent below the €3.9 million achieved last year. In the first half, the group recorded a pretax profit of €2.1 million meaning that in the second half, it would only make €300,000. Full-year sales will lag expectations by between 8 and 9 per cent, it said.
Qualceram blamed the shortfall on factors outside of its control, citing the slowdown in the Irish housing market and the higher interest rate environment.
After reporting a 7.3 per cent decline in net profit in the first half, it said these issues had hit activity even more in the third quarter.
"We continue to operate in the very challenging environment of increased competition, energy costs and interest rates, aligned with a noticeable slowdown in the Irish housing market," said chairman John O'Loughlin.
As a result of what it has described as difficult trading conditions, Qualceram has restructured its business, outsourcing production, reducing its headcount and moving premises. The profit estimate does not include €31 million from the sale of its HQ in Arklow, Co Wicklow, which is awaiting shareholder approval.
