Qualceram Shires has reported lower sales and profit in the first half but said its business has seen a significant recovery from the second half of last year.
Pretax profit for the six months to end Jun was €1.54 million, down from €3.72 million in the same period year earlier on sales of €51.22 million, down from 56.67 million. The group is not paying a dividend.
The company said with turnover rising 12.4 per cent over the second half of 2001, it is confident that by keeping this trend for the remainder of the year, turnover for the full year will be in line with expectations.
The company said the cost-reduction programme across the group is continuing, although an increase in insurance and distribution costs have had a negative impact in the period.
The group is pursuing a number of options to generate cash from its property portfolio, with a view to reducing the level of gearing which stands at 128 per cent, down from 142 per cent.
The company said market conditions remain challenging in Ireland but Qualceram Shires brands are performing strongly. The introduction of new suites in Britain will help the Shires brand to meet its potential in a market where conditions are viewed as generally favourable, it said.
PA