Artisan warns of 'worst trading conditions' it has known

Housebuilder Artisan has achieved trading results "only slightly below" expectations, despite "the worst trading conditions in the residential market Artisan has known".

In a statement the company said that conditions for its residential arm Rippon Homes remained "challenging". It has reduced the speed at which it completes units - 6.7 units per month for the 12 months to 30 June, compared to 10.7 in the previous year.

It added that the sites it was currently selling homes on are profitable and that were not expected to attract any write-downs. However it said it expected to make a provision against one site which has planning permission only for apartments.

Meanwhile Artisan reported that its commercial arm performed "well", with a broad range of businesses willing to consider new commercial property.

But the company warned that it expected a reduction of 0.25% in its previously estimated investment yield at its property investment division. The reduction is expected to result in a "materially adverse effect" on the group's pre-tax profit.

Despite this, Artisan said the property investment arm has made "significant progress" in the second half of the year and has delivered its largest investment in property yet.