Cheshire-based developer and contractor Pochin鈥檚 has posted a pre-tax loss of 拢4.4m for the six months ended 30 November 2009.
Turnover was down slightly at 拢47.5m on the same period a year earlier, (2008: 拢49.9m).
Almost all of the loss was down to property-related impairments, totalling 拢4.23m
Chairman Richard Fildes said: 鈥淪ubdued levels of construction activity and weakness in the occupational market for commercial property continue to affect the Group's performance.
鈥淭he recent exceptional weather conditions have exacerbated the weakness in construction activity such that the Group's trading divisions are unlikely to show an improvement in the second half of the year.
鈥淣o improvement in the concrete pumping market can be reported and the Group continues to sustain damaging losses from this activity.鈥�
In commercial property, Pochin鈥檚 rental income from its core portfolio increased during the period. However, its joint ventures have proved 鈥渓ess satisfactory鈥�.
A re-assessment of value of one of the large jointly-held development sites has been necessary and, in another location, Pochin's is being required to support a joint venture where continuing voids in a completed development are proving painfully persistent.
鈥淲rite-downs associated with the joint ventures referred to above account for almost all of the loss reported for the period,鈥� said Fildes.聽 鈥淕roup costs remain under tight control with further reductions in overheads being delivered.聽 Net borrowings have fallen during the period.
鈥淎fter such a dramatic collapse in the values of commercial property combined with the well publicised contraction in available credit for the industry, it is difficult to forecast an early return to the levels of development and construction activity of two years ago,鈥� Fildes concluded.
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