Qualceram, the sanitary ware manufacturer, has recorded a 25 per cent increase in pre-tax profit to €1,596,000 (£1,257,000) in the six months to June 30th, 1999, from €1,275,000 in the same period last year. This growth is expected to continue. "The outlook for the remainder of the year is positive", chairman Mr Sean Henneberry tells shareholders in his interim review.

"Changes in our distribution channels in the UK are expected to have a positive impact in the second half of the year as we continue our policy of strengthening our links with our customer base."

The latest results show an 8 per cent rise in sales to €7.7 million from €7.2 million. Pre-tax profit margins improved to 20.8 per cent from 18.1 per cent due to a better product mix. Reflecting real growth, earnings per share grew by 26 per cent to 10.47 cents from 8.30 cents. Shareholders will receive a bigger payout, with a rise in the interim dividend from 1.397 cents to 1.587 cents. The results were boosted by a grant of €112,000 in connection with its Turkish tile joint venture which was taken into the profit and loss account. This venture had only minimal sales, €5,000, in the first half. The plant is now operational and the "prospects continue to be promising" says Qualceram. Mr Aidan Clince, company secretary, says the plant should break even this year and show a profit next year.

Mr Henneberry says significant progress has been made in streamlining distribution channels in Britain. A second distribution centre was opened and will service the London market. Sales in Britain rose to €3.18 million from €2.98 million. The domestic market, which experienced a rise in sales to €4.18 million from €3.88 million, remains buoyant, he says. Qualceram continues in a strong financial position with minimal net debt.