Property development group Abbey reported a fall in pre-tax profits during the six month period to the end of October 2005.
Pre-tax profits over the period fell to €22.32 million, down from €26.12 million in the same period last year. At the operating level, profits slipped to €21.34 million from €25.17 million.
"Our house building division completed 330 sales (UK 194; Ireland 136) with a turnover of €86.53 million generating an operating profit of €20.29 million," Abbey said.
"Margins have continued to be eroded as higher margin projects are gradually replaced by more recent lower margin schemes."
The company said the Irish market remains firm and it expects a good performance over the coming months. But Abbey noted the market in the south of England remains "challenging".