THE three founders of Co Wicklow based bathroom suites manufacturer, Qualceram, are likely to share £4.5 million when the company begins trading on the London and Dublin market next week.

The founders, Qualceram managing director Mr John O'Loughlin, marketing director Mr John Byrne, and production and technical director Mr Tom Byrne, are placing three million of their shares at 150p each with institutions in London, Edinburgh, Glasgow and Dublin as part of the forthcoming flotation. The three have equal shareholdings in the company and will each realise £1.5 million from the flotation.

A further £1.9 million of the company's shares will also be placed, bringing the total funds raised to £6.4 million, and valuing Qualceram at £20 million.

The total 4.3 million shares have already been conditionally placed with institutions by English Trust, through British brokers Teather & Greenwood and Davy Stockbrokers.

The founder shareholders will retain a majority stake holding 64 per cent of the company after the flotation, according to its prospectus issued yesterday. The shares have been priced at 14 times earnings at 150p or 143p sterling. In the year to the end of December last, the company reported pre tax profits of £1.5 million on sales of £7.3 million. In the previous year it reported pre tax profits of £1.4 million.

The placing will raise £1.4 million, net of expenses, for the company. It will also receive a further £595,775 by way of a subscription by ICC Bank for 530,517 of the new shares.

Out of the monies raised £600,000 will be spent on expanding its ceramic manufacturing plant. A further £400,000 will go towards developing its acrylic bath plant while £750,000 will be spent on establishing a Dublin distribution centre.

Qualceram employs 105 people manufacturing a range of luxury bathroom suites mainly for the refurbishment market. It qualifies for the special 10 per cent tax rate for manufacturing industries which applies until 2010.

Over 50 per cent of its sales are in the Irish market, with 45 per cent of its bathroom suites going to the UK while it also exports to continental Europe and the Gulf States.

Apart from the founders, Qualceram's other directors include Mr Sean Henneberry, who is non executive chairman. Mr Henneberry is the former secretary and financial controller of the Irish Management Institute, and previous worked as managing director of Masstock International and was financial director of the Ryan Hotel group. Two other non executive directors are named in the prospectus, Mr Darach McEvoy, managing director of Quaestas and chartered management accountant Mr Sean Donnelly.

According to its prospectus, the three executive directors each have service agreements with the company for the next two years, with a fixed salary of £58,000 each.

Qualceram is the only Irish manufacturer of vitreous china bathroom suites. It operates in house training schemes for its skilled craftworkers and has invested heavily in research and development.

The company was founded in 1988 employing 17 people after the Armitage Shanks plant closed in Arklow.