The company has posted a pre-tax loss of £19.5m after exceptional items for the year ended 31 December 2007.

Turnover also fell from £6.7bn to £5.9bn. 5.6m (2006: £776.5m)

However, chairman Norman Askew was upbeat pointing out that the 2007 merger with George Wimpey had already raised significant benefits.Commenting on the results, Norman Askew, Chairman, said:

Pete Redfern, group chief executive, said:

"We have delivered a strong margin improvement in the UK Housing business during 2007, substantially exceeding our target of 14%. We continue to anticipate a more difficult trading environment in the UK during 2008. However, we have actively positioned the business for more challenging conditions and are well placed for the future with a strengthened land bank, excellent momentum and a robust financial position.

"In North America, following the merger, we are better positioned to navigate the ongoing challenges. In the short term, our strategy remains to focus on realising cash from existing sites, reducing the cost base, and maintaining a steady sales pace. Whilst it remains too early to make significant land purchases, we are well placed to take advantage of any high quality land acquisition opportunities that arise as a result of the prolonged market weakness."