Wicklow-based Qualceram Shires has said that market conditions in Ireland and the UK remain challenging and that its half yearly results will be affected as a result.
The worsening impact on sales of the firm's bathroom products has been detailed in an interim management statement, which blamed the reduced level of housing starts and a weakening in the economic climate both in Ireland and the UK for the fall.
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The company has also reported a reduction in the number of operation days as a result of the Easter holidays, which it says had an impact on trading.
Qualceram Shires' group turnover in the first quarter of 2008 declined by 30% on the same time last year. Although this takes into account a 13% fall in the sterling euro exchange rate, which has an associated impact on trading results.
The group expects a similar 30% drop of year-on-year figures by the time half-year turnover for 2008 is calculated.
The company plans to counteract negative trading conditions by diversifying its products in markets where it current does not have major presence. Qualceram Shires has its strategic sights set on the DIY sector and other retail areas in the second half of 2008.
Niche export markets are also being maximised by the group, which is expected to be a significant contributor to profits during the remainder of 2008.
(PR/JM)
