Qualcream Shires is exploring a number of options to reduce its debt, chief executive Mr John O'Loughlin said yesterday. Speaking after the bathroom product manufacturer's annual general meeting, Mr O'Loughlin said the company's recent share placing was the first of a number of measures it was taking.

"We do have a high level of gearing [following the acquisition of Shires] and it is a particular focus of the group to reduce that gearing," he said.

"There are quite a number of initiatives we are adopting on an ongoing basis to deal with the gearing situation and the share issue is just one of those. We have a very strong asset base. We have 1.5 million square feet of property on a freehold basis and we have some properties which are available for disposal because, as a result of integration, they are now idle."

He said he expected the company to dispose of some property during 2002.

"We also have a high level of stock on our balance sheet and we'll be taking action to address that, not just from a sales point of view but also from a rationalisation point of view," said Mr O'Loughlin.

He said the company had almost completed the bedding down of the acquisition of Shires in 2000.

"Last year was very much a year of integration and restructuring of our business. We have made huge progress in the integration but you never really stop in terms of continuous improvement," he said.

Mr O'Loughlin said he was optimistic about trading in the current year. "Certainly we have no major fears for our position and progress in the Irish market," he said.

"The UK is very stable. The demand is there and all figures indicate the sector is quite strong. We still have a job of work to do there in order to grow market share but we have all the fundamentals in place."