Qualceram, the sanitary ware manufacturer, has announced a 14 per cent increase in pre-tax profit to #3.12 million (£2.46 million) in 1999. Chief executive Mr John O'Loughlin said he was pleased with the performance in each of the group's markets, "particularly bearing in mind the level of restructuring of our distribution channels that took place in the UK".

At the halfway stage, pretax profit rose by 25 per cent but this fell to just a marginal increase in the second half. Company secretary Mr Aidan Clince said this contraction arose because of the move to a distribution centre in London.

Sales increased by 15 per cent to #15.5 million (£12.2 million) from #13.4 million. Earnings per share grew from 18 cents to 21 cents and the final dividend has been raised from 2.79 cents to 3.17 cents, bringing the total to 4.762 cents, a 14 per cent increase on last year.

All geographical areas showed growth in sales. The Irish operations grew to #8.45 million from #7.25 million; in the UK, sales increased to #6.36 million from #5.59 million; while mainland Europe saw a rise to #533,000 from #436,000.

Its second British distribution centre in London was fully operational in the last quarter and contributed to the increased sales.

"We have successfully enhanced our distribution systems in the UK, giving the group greater control over our marketing effort," the group said. During the year it commissioned a new manufacturing plant. This made a positive contribution to the results.

Mr Clince said there should be similar growth this year but margins should be better.