Qualceram Shires plc, which has an acrylics plant and warehouse in Bradford, has seen a fall in profits of nearly £5 million.

Operating profits for the first half of 2002 have dropped to £4.1 million from £6.4 million, while turnover has dropped 9.6 per cent to £51.2 million from £56.7 million for the same period last year.

John O'Loughlin, chief executive of the firm, said: "We are confident that with a continued focus on costs, customer service and product availability, the trend in turnover levels will remain constant, which will keep the group in line with expectations for the full year." To cut costs the firm is set to form strategic alliances with European ceramic manufacturers, and is looking to reduce staff numbers at its plant in Hanley.

Sean Henneberry, company chairman, added: "Market conditions remain challenging in Ireland but Qualceram Shires brands are performing strongly.

"The introduction of new suites in the UK will help the Shires brand to meet its potential in a market where conditions are viewed as generally favourable."

In March the firm announced turnover was up 137 per cent. The firm, which has its head office in County Wicklow, Ireland, manufactures ceramic bathroom products.

The firm employs around 150 staff in Bradford. Established in 1988, the company now supplies "everything inside the bathroom door".

The Shires group of companies, acquired by Qualceram in September, 2000, is long established in the bathroom industry.

Founded in 1934, the group now includes two sanitary ware plants in Stoke-on-Trent, a shower enclosure factory in Rochdale, Lancashire, and a fireclay and terracotta plant in Darwen, Lancashire.

The Qualceram Shires group employs more than 1,000 in Ireland and the United Kingdom. Last year was the first year the results of Shires Limited and Shires (Ireland) Limited were fully consolidated into those of the group.