Pre-tax profit from continuing operations fell to £35.8m in the six months ended December compared with £54.7m last year. Turnover was also lower at £353.1m from £387.7m previously.

Financing costs in the period were higher at £8.7m compared with £6.9m last year reflecting a combination of higher interest rates and average debt levels. The group said it expects the second half interest charge to be at a broadly similar level to the first half.

"Our overall expectation remains that 2008 will present a more difficult trading environment than the industry has experienced for many years with lower levels of confidence in the housing market," said chairman Alan Bowkett.