Qualceram Shires, the Irish bathroom products maker, today reported has a pre-tax loss of €3.4m in the first half of 2008, compared with a profits of €2.1m a year, resulting from the impact of the housing contractions in the UK and Ireland.

Revenues plunged by 28% to €36.1m.

Qualceram said revenues were also expected to fall in the second half as economic conditions remained tough. It warned that further cost-cutting measures would be taken to combat the downturn.

Its Irish turnover fell 34% to €13.7m in the first half, while UK turnover was down 27% to €18.9m. No interim dividend will be paid.

Earlier this year, Qualceram disposed of a prime site at South Quay, Arklow, for €30m. It said it was also in talks to sell off two sites in the UK. The company recently announced it had ended talks with interested parties on a takeover of the company.

Commenting on the results Group Chief Executive of Qualceram Shires plc, John O'Loughlin said: "Demanding market conditions have impacted on turnover and profitability in the first half of 2008 and conditions will remain challenging for the remainder of the year. Further rationalisation will be implemented to counteract the downturn with particular emphasis on cash management."