Arklow's Qualceram Turnaround with €3.9m Profits

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Arklow's Qualceram Turnaround with €3.9m Profits

Friday, March 30 2007

Qualceram Shires, the Arklow producer of bathroom suites, has turned in pre-tax profits of €3.9m for last year, which marks a turnaround on the loss of €5.1m in 2005.

The 2005 results included exceptional costs of €6m linked to restructuring.

Qualceram turnover was up 6.4pc to €102m, while earnings per share were 15.72c. No dividend will be paid.

Qualceram chief executive John O'Loughlin said the year saw a marked improvement in profits and turnover in its key markets, despite "challenging and competitive" conditions.

Chairman Peter Addison said that competitive market conditions and rising energy costs were a challenge last year.

"These pressures continue to be addressed by successfully developing our outsourcing arrangements, focusing on our supply chain and by improving the quality of our service delivery."

Turnover in Ireland rose from €42.6m to €45m, while UK sales were up from €47.5m to €50.3m.

Outsourced products accounted for 65pc of group turnover last year, compared with 51pc in 2005. Operating profits increased to €4.1m from €1.5m.

Qualceram said yesterday that although new house building in Ireland is set to decline this year, it should benefit from the spending of SSIA matured policies.

The company is working on plans to sell its Arklow site and relocate to another site in the area. The 11-acre waterfront site has planning permission for residential, hotels and retail use and is a key 'trophy' site on the East coast.

The three production facilities will be relocated to a state-of-the-art building in the Arklow area.

Davy Stockbrokers said yesterday it was re-rating Qualceram on the basis of the results.

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