Countryside Properties saw its share price tumble today after warning first-half results would be “significantly” down on last year.
The company, which is a specialist in urban and rural regeneration, said the weaker market for higher priced homes had been a factor in the profits decline.
Timing issues relating to larger and more complex projects also meant results would be weighted more towards the second half, the company added.
Shares fell 12% following the trading update.
Despite the half-year disappointment, the Brentwood, Essex-based company said its performance for the full-year would still show some improvement.
Prior to today, analysts had been looking for annual profits in the region of £42m, up from the £36m reported in the last financial year.
Countryside said: “The directors believe that the group’s prospects remain good and expect the group to continue to show improving financial results.”
In today’s update, the company said the market for lower-price homes across all of its regions had improved in recent months with forward sales of new housing currently 40% ahead of a year earlier.
However, it added the market for homes worth over £300,000 had remained slow.
So far 60% of the company’s projected housing output has been completed or forward sold while 15% of next year’s expected output has been bought.
References: EGi News 16/04/04
