Interim Management Statementt
May 12 2008 - 2:00AM
UK Regulatory
SU:RNSTESTZI:RA:12-05-08 06:00:02RB:20080512060002RY:YRC:Y..RH:Interim Management StatementtRD:Qualceram Shires
PLCRI:IE0007172707RJ:IERP:QLC RG: RT:RSI: HR:1210572016-40a8a709-04881N1:N2:SN:RNS1336USQ:1405HS:ipxrns_2008-5-12_07:00:16_1_132~RNS
Number : 1336U
Qualceram Shires PLC
12 May 2008
Qualceram Shires plc
Interim Management Statement
Dublin, London, 12 May, 2008: Qualceram Shires plc ("Qualceram Shires" or the
"Group"), a leading manufacturer, and distributor of a wide range of bathroom
suites, today issued its first Interim Management Statement in accordance with
the reporting requirements of the Transparency Regulations 2007.
Quarter to 31 March 2008
As previously outlined by the Chairman at the time of the preliminary statement
on 20 March 2008, market conditions for the Group in Ireland and the UK were and
remain challenging. In particular a significantly lower level of housing starts,
in Ireland and the UK, together with the weaker economic climate driven by an
uncertain European interest rate environment and difficulties in the financial
markets, has materially impacted on sales of the Groups' bathroom products. A
reduction in the number of operational days as a result of the Easter Holidays
also had an impact on trading.
Group turnover in the first quarter of 2008 declined by approximately 30% on the
corresponding period in 2007 after taking into account a 13% decline in the
sterling euro exchange rate. This has had an associated impact on trading
results.
Anticipating these external factors, the Group embarked on a cost reduction
programme which was provided for in the year ended 31 December 2007 and which
was implemented in the first quarter of 2008. The full benefits of this
programme will take effect from the second quarter of 2008.
Outlook
Current trading has followed the pattern of the first quarter to 31 March, 2008.
Accordingly, the Group expects Group turnover for the half year to 30 June,
2008 to decline by approximately 30 percentage points, compared to the first
half of 2007.
To counteract the contraction in the market the group has looked to develop new
business in areas where it has not had a significant presence . During the
second half of 2008 the group expects to develop business in the DIY sector and
other retail areas. In addition new designs and an efficient cost base allows
it to compete strongly for existing business.
Furthermore the Group continues to take advantage of demand for its products in
niche export markets and the Board expects this business to grow significantly
as a contributor to Group profits in 2008 and future years.
The Group has made good progress in steadily reducing its cost base in recent
years. As a result, the Group's flexible supply chain enables it to match supply
and demand more efficiently. The Board will continue to exploit every
opportunity to increase efficiency and reduce overheads and remains confident
that Qualceram Shires will emerge from the current downturn as a stronger Group,
positioned for growth. Furthermore the Group continues to take advantage of
demand for its products in niche export markets and the Board expects this
business to grow significantly as a contributor to Group profits in 2008 and
future years.
Approach
The Group announced on 20 March 2008 that it had received an unsolicited
approach that may or may not lead to an offer. Since that time the Board, in
conjunction with its corporate advisers have undertaken a process to evaluate
that initial approach. This process is ongoing.
Financial Calendar
Qualceram Shires plc issued its annual report on 8 May 2008 and will hold its
AGM on 30 May 2008.
ENDS
For reference:
John O'Loughlin Aidan Clince
Chief Executive Company Secretary
Qualceram Shires plc Qualceram Shires plc
00-353-402-31288 00-353-1-4047600
Drury Communications:
Paddy Hughes / Myra McAuliffe
Tel: 00-353-1-2605000 / 00-353-87-6167811
Notes to Editors
Qualceram Shires plc is a leading manufacturer, marketer and distributor of a
wide range of bathroom suites through five principal brands, namely Qualceram,
Shires, Shaws of Darwen, Selecta and Trent. The Qualceram brand offers a
diverse and comprehensive range of traditional and contemporary bathroom
products. Shires has been one of the leading brands in the United Kingdom and
Ireland for over half a century. The Group's Selecta brand is regarded for its
range of showering products, most notably for its high standards of quality and
choice. Established in 1897, Shaws of Darwen produces a unique product set of
handmade fireclay sinks, and over 100 years old, the Trent brand maintains
bathroom suite designs of every era, from early Victorian times through to
today. With leading market positions in Ireland and the UK, coupled with
increasing access to other international markets the Group's strategy is to
increase market share in the luxury end of the bathroom products sector by
offering a complete package of branded products, supported by superior customer
service.
www.qualceram-shires.com
The directors of Qualceram Shires accept responsibility for the information
contained in this announcement. To the best of the knowledge and belief of the
directors of Qualceram Shires (who have taken all reasonable care to ensure that
such is the case), the information contained in this announcement for which they
accept responsibility is in accordance with the facts and does not omit anything
likely to affect the import of such information.This information is provided by RNS
The company news service from the London Stock Exchange
END
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