Qualceram Shires in talks over liabilities

QUOTED BATHROOM fittings manufacturer Qualceram Shires is in talks with its banks and landlord in an attempt to ease the group’s liabilities.

The Dublin and London-listed group noted in a trading statement yesterday that the property slump has hit its performance. “Ongoing negative consumer sentiment and the lack of availability of mortgage finance continues to impact unfavourably on the group’s markets and financial performance,” it stated. The company wants to sell surplus properties, but this would result in a breach of its agreements with its landlord, which will, in turn, give the landlord the right to call in letters of credit worth €2.6 million.

Qualceram said it is in talks with the landlord to waive the covenants and letters of credit. The group’s bank is also involved in these talks.

The group also warned that the collapse in share values over the last year had hit the performance of its pension scheme. “In common with most companies that operate a defined benefit pension scheme, equity performance over the past 12 months has had an adverse impact on fund performance,” Qualceram said.

“Whilst the exact impact on the group’s results are yet to be finalised, discussions are continuing with the trustees of the pension scheme in the United Kingdom in relation to the ongoing funding requirements of the UK pension scheme.” Qualceram is due to issue its 2008 preliminary results in three weeks time.