News

Bathroom suites manufacturer Qualceram Shires has sacked 33 people since the end of June as the slide in turnover accelerates and the firm gears up for a full year loss.

Sales for the four months ended 30 October 2008 were 33% behind the same period in 2007, taking sales for the year so far down by 30%. Half year turnover dropped 28%.

Qualceram's businesses continue to be adversely affected by the slowdown in the property market and economic gloom in Ireland and the UK, with trading so far this month showing no sign of improvement.

It reported a pre-tax loss of €3.39m for the first six months of 2008, down from a £2.11m profit a year earlier at profit of €5.36m for all of 2007.

The company said it continues to reduce its cost base "at every opportunity" with a view to resizing its overhead base to match current market conditions.

"Where possible, output from the group's manufacturing plants is being reduced to match current demand," added the firm, which has also agreed heads of terms on the sale of its interest in the Longton facility.

"Whilst we welcome the interest rate reductions announced last week in our key markets, and are hopeful that if these are passed on to consumers it will help to stabalise the market, the group expects to report a loss for 2008," it said.

"Increased mortgage availability and a return of customer confidence remain the key requirements for a sustained market recovery."

The general downturn in the economy, credit market conditions and uncertainty surrounding a recovery in Qualceram's key markets forced a potential suitor to pull out of bid talks at the end of August.