Shares in Qualceram Shires fell by 13 per cent yesterday after the company warned that its full-year results were likely to fall short of market expectations.

The bathroom manufacturer said that a weak UK market, its failure to pass on higher energy costs and increased competition from the Far East had squeezed margins and would hit its full-year performance.

But given the difficult market conditions, it said its overall performance had been satisfactory and was "comfortably ahead of last year".

Weakness in the British housing market and pricing pressure were behind the softness in the UK market which accounts for around 54 per cent of group turnover. Qualceram said it also faced record energy costs, combined with higher utility prices in the second half, leading to an increase in manufacturing and transport costs. The company said it had not been able to pass on these costs in selling prices and it expected the impact to be around €1.25 million in a full year.

It also noted that it had been forced to respond to weak market conditions in its main British market and increased competition from Far East imports by reducing selling prices.

The shares lost 27 cent or more than 13 per cent to €1.75 yesterday but trading was light with around 6,000 shares changing hands.