Builder Abbey reports pre-tax loss of €5.39m

Dublin-headquartered homebuilder Abbey PLC in interim results relased today reported a pre-tax loss of €5.39m for the six months to end October, compared to a profit of €18.20m for the corresponding period last year.

The company attributed the results to the downturn in the UK and Ireland property sector, saying market conditions in both territiories "continue to be severely impacted by the prevailing negative sentiment."

The company said it would not be paying a dividend, describing the immediate outlook as "very weak".

"The turmoil in the banking markets in both Britain and Ireland make for a difficult backdrop for a business reliant on strong mortgage markets," the statement said.

"The recent forecast in Britain of negative net new mortgage lending in 2009 is cause for concern."