The company said it plans to direct funds to its housing regeneration business.

Chairman Dermot Gleeson said: “This reflects the Board’s belief that this market has probably peaked and that Gleeson’s cash resources will be better invested in housing regeneration, the Group’s principal focus.”

The company’s turnover in the six months to 31 December 2006 increased by 18.2% to £78.9m. Profits dipped from £8.7m to £6.9m.

Gleeson said it will expects work to begin on five regeneration sites before 30 June 2008. these include a £50m five-year new build housing project for Homes and Regeneration South, with a £23m 30-year facilities management contract for Gleeson Services attached to it.

The group is also one of a preferred consortium of developers for a potential £86m ten-year housebuilding programme in North Huyton, Merseyside.