Housebuilder Abbey sells off plots after £16m writedown

Anglo-Irish housebuilder Abbey is starting to sell off plots after a £16.4 million write-down on the value of both its landbank and work-in-progress cut annual profits by three quarters.

In the year to April 2008, Abbey sold 467 homes in the UK and 249 in Ireland – up from 457 and 220 respectively in the previous year – but profits collapsed to just £8.4 million.

Chairman Charles Gallagher said: “UK trading over the period as a whole was satisfactory however the trading environment became steadily more difficult as the year progressed.

“In view of the current trading environment the group's landbank will likely decline this year.”

Turnover did edge up seven per cent to £136 million at Abbey’s housing arm in 2008 but Mr Gallagher expects falls in the future and the group’s 2,300-plot landbank will be reduced.

Abbey’s UK plant operation, M&J, managed to raise operating profits £240,000 to £2.2 million despite turnover retreating around £400,000 to £16.4 million.