Homebuilder Abbey reports loss on writedowns

Dublin-listed homebuilder Abbey has reported a first-half loss due to writedowns in the value of its development land.

Dublin-listed homebuilder Abbey has reported a first-half loss due to writedowns in the value of its development land.

In a statement this morning Abbey said during the first six months to October it suffered a pretax loss of €5.39 million, compared with a profit of €18.2 million, a year earlier.

This includes a land impairment charge of €11.9 million. The company has suspended its dividend.

The house-building division completed 235 sales; 169 in the UK and 66 in Ireland with a turnover of €47.16 million and a operating loss of €6.63 million.

Sales were 48 per cent lower at €56.1 million. The company said its short-term prospects "continue to be poor" and said the turmoil in the banking markets created a difficult business environment for a sector dependent on mortgage markets.

At 9.26am Abbey shares were unchanged at €3.05.