Stewart Milne Group have announced a solid trading performance for the year to June 2008.

Despite the considerable impact of the "credit crunch" on the housing market the Group have reported Operating Profits of £42m for the year to June 2008, a reduction of 20% from the 2007 figure of £52m.

The pre-tax profit for the year was £25m, a reduction of 40% from the 2007 figure of £42m. Turnover for 2007/8 was reported at £420m, compared to £348m in 2006/7, an increase of 21%.

Glenn Allison, Group Managing Director, said: "In the difficult trading conditions we faced during the year a 20% reduction in our Operating Profit is a relatively good performance overall."

In common with the rest of the housing industry, the Group has had to contend with trading conditions, which deteriorated through the year and were particularly severe in their impact in the period from January to June 2008. However, the Group firmly believe that the underlying demand for housing remains strong and will increase with wider Government action.

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Chairman & Chief Executive, Stewart Milne, said: "No-one is immune to the current market challenges in the housebuilding sector. There is a lack of confidence with potential house buyers and this combined with a lack of liquidity in the market place has stopped many people from buying new homes.

"We understand our customers' anxieties and have put together a range of packages/measures that deal with the problems that they are facing.

"We have recently launched a competitive mortgage package and a Home Value Guarantee to new customers, that protects the value of their new home if they wish to sell in a 3-6 year period. We will pay back any shortfall.

"We have a strong belief in our product and these initiatives demonstrate our confidence in the longer term view of the sector."

The Group has confirmed that it has made 278 of its employees redundant. This was slightly less than the potential redundancies announced in July, with the majority of those taking advantage of enhanced voluntary packages.

The Stewart Milne Group comprises four main operating areas: Housebuilding, Timber Systems, Commercial Developments & Construction.

Despite difficulties in the market the Homes Division still produced a turnover of £228m, Timber Systems £86m and Commercial Property £46m but the star performer has been the Construction Division which has increased turnover by £47m to hit £78m.

(GK/JM)