Bathroom suite maker Qualceram Shires said yesterday the group's performance in the first five months of the year was satisfactory and in line with expectations.

In a statement to the stock exchange to coincide with the company's annual general meeting, chairman Peter Addison said turnover in the five months was ahead of the same period last year. However, in the first six months of 2005, Qualceram recorded a 6 per cent decline in turnover to €49.7 million after struggling with increased price competition, particularly in the UK.

Group secretary Aidan Clince said this pricing pressure was ongoing and even starting to filter through to the Irish market.

Qualceram was forced to issue two profit warnings last year before posting a net loss for 2005 of €5.39 million. The company, which sells bathroom suites in the UK and the Republic as well as exporting them to parts of Europe, the US and the Middle East, has suffered as intense price competition and rising energy costs have subdued trade.

Mr Clince said high energy prices were a concern for the company, but one that it was currently coping with. Qualceram has closed one plant and reduced the size of another in order to reduce costs, as well as moving some manufacturing activities to the Far East and eastern Europe to reduce overheads.

Mr Clince said the group planned to spend more money on marketing and product development and hoped to boost sales in the UK of its overall package - something that is very popular in the Republic. Currently in the UK individual items of bathroom furniture tend to be bought separately and often from different suppliers, he said.

Qualceram has about 50 per cent of the Irish bathroom furniture market, compared with only about 10 per cent in the UK.