It said that adverse market conditions mean that the contribution to profits it had expected from its property development arm are likely to be below expectations.

The group was anticipating a significant contribution to annual profits from its property division, assuming a number of property deals completed in the second half of 2007. However, current conditions in the credit markets have resulted in the sale of these developments being delayed.

The statement said: "While the management remains confident of completing these deals in 2008, it is now increasingly unlikely that completion will take place by the end of the current financial year. The additional profits we anticipate from the construction and mechanical and electrical services divisions will be insufficient to compensate for the lack of contribution from and the overhead costs incurred by the property division.

"As a consequence, the Group's financial performance for the year ended 31 December 2007 is now likely to be significantly below current market expectations."

Metnor's construction and mechanical and electrical services divisions continue to perform strongly and are on course to exceed expectations for the year.