Abbey swings to loss, scraps divi

Housebuilder Abbey scrapped its dividend as it swung to a full year pre-tax loss of €54.4m compared with a profit of €16.8m in the previous year. Group operating losses during the year were €55.6m in the year ended 30 April against a profit of €15.1m last time. The group said the result has been 'materially' impacted by an impairment charge of €58.1m against land and work in progress arising from the continuing difficult market environment. Abbey said it is not recommending a dividend "in view of the reported loss.""Group turnover for the year ahead is likely to fall again with declines in the UK and Ireland not outweighed by a first time contribution from the Czech Republic," said the group."Prospects for a return to meaningful profitability are wholly dependent on the successful sourcing of new opportunities to build and sell houses at a profit.""This will inevitably take time. The group is financially well placed to exploit any opportunities that arise," it added.