LONDON (ShareCast) - Bid target Qualceram said the slumping housing market continues to depress revenues for its bathroom products.
Group turnover in the first quarter was 30% lower than in the corresponding quarter of 2007 after taking into account a 13% slide in the value of sterling against the euro.
The lower level of housing starts in Ireland and the UK plus the weaker economic climate together with the early arrival of Easter, which reduced the number of trading days, dampened sales, the company said.
Trading levels have been much the same in the second quarter and accordingly the company expects turnover for the first half of 2008 to be some 30% lower than it was in the first half of 2007.
In anticipation of a more challenging trading environment the company has been reducing costs and the full benefit of the measures taken is expected to start showing through in the second quarter of 2008.
Qualceram intends to reduce its dependence on the bathroom products market and in the second half of 2008 expects to develop business in the DIY sector and other retail areas.
In respect of the bid approach announced in March, the company is in the process of evaluating the unsolicited approach with the help of its corporate advisers.
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