Profits rise at Qualceram

Qualceram, the sanitary ware manufacturer, continues to record good growth. Pre-tax profit grew by 22 per cent from £0.82 million to £1.0 million in the six months ended June 30th, 1998, according to interim figures. The results reflect the growing demand for its products in its prime markets - Ireland, the UK and France - and the "success of our strategy of expanding our product range", said managing director, Mr John O'Loughlin. Further investment now, and in the next year, will lead to more growth.

Qualceram has confirmed the joint venture agreement with the Turkish group, Eczacibasi. Under the agreement the joint venture company will manufacture a range of ceramic wall and floor tiles in Arklow. Marketing is scheduled for early in 1999 with production commencing in the second half of 1999. The total investment is £2.5 million. Mr Aidan Clince, Qualceram's company secretary, said the joint company should break-even in the first full year's trading. It will sell under the Qualceram and Vitreous brands.

The group said it has achieved strong growth in developing its distribution centres at Elland in the UK and Lyons in France. And its distribution centre in Dublin has "consolidated our presence" there. The latest results show a 29 per cent rise in sales to £5.6 million and growth was achieved in all geographical areas. Reflecting real growth, earnings per share rose from 5.63p to 6.53p. The interim dividend is being raised from 1.0p to 1.1p. The first half saw an expansion of the existing production facilities, a doubling of output from the acrylic bath plant and the commissioning of the bathroom furniture plant in Arklow. This will manufacture a full range of wooden panels, vanity units and seats for the domestic and export markets.