Bathroom group Qualceram Shires plc is to sell its site in Bradford as it tries to cut costs and save jobs.

Last September the firm, which employs 150 at its acrylics plant and warehouse on Beckside Road, reported a fall in profits of nearly £5 million.

Operating profits for the first half of 2002 dropped to £4.1 million from £6.4 million, while turnover dropped 9.6 per cent to £51.2 million.

The Irish Stock Exchange-listed company has signed a conditional agreement to sell and leaseback six properties it owns to raise more than £20.3 million.

It will sell and leaseback four properties in England, including the Bradford site, and two properties in Ireland.

The other sites in England are at Stoke-on-Trent, Darwen in Lancashire and Rochdale.

John O'Loughlin, chief executive officer for Qualceram, said: "There is no fundamental benefit in owning properties as opposed to leasing them.

"The properties are being disposed of to one large investor and negotiations are at an advanced stage.

"The reduction of debt on the balance sheet as a result of the transaction will allow the group to re-focus on trading."

A spokesman for the firm added: "There will be no effect to current operations. The company's position is clear - there is no financial benefit to ownership of these premises, however, the sale of them more than halves the group's debt - that's where the benefit is to the group and to the jobs within the group."

Qualceram, which has its head office in County Wicklow, Ireland, announced last December that it was to shut its ceramics plant in Hanley, Stoke-on-Trent. The closure lead to jobs losses for 150 people. No jobs were lost in Bradford.

The six manufacturing and distribution properties in the UK and Ireland will be sold to US commercial property investment banking group WP Carey & Co.

Qualceram will leaseback each of the properties on 25 year contracts for around £1.9 million a year.

The firm, which hopes to make £1.7 million profits from the sale, will use the cash it raises to cut debts.

Mr O'Loughlin added: "The transaction will assist in the future growth and development of Qualceram.

"This transaction more than halves our bank debt whilst reducing the costs going through the profit and loss account."

Before the sale goes ahead shareholders will be asked to vote on the move which accounts for around two thirds of the group's property portfolio.