Interim Management Statementt

    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: [phone]











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
 
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