Fall comes after housebuilder says pre-tax profit would be below expectations
South-east based housebuilder Oakdene has seen its share price drop by a third yesterday after a profit warning.
The Surrey-based company said pre-tax profit for the year ended 31 December 2007 would be “materially below market expectations but, subject to unforeseen circumstances, not less than £5m”.
The consensus pre-tax profit forecast for the year was £10.9m on turnover of £55.7m.
Shares started the day at 99.5p per share and ended it at 66p.
Ahead of its full results in May, it said the credit crunch meant trading during the last three months was significantly below expectations and two major transactions had not completed before the end of the year.
The first was a bulk sale of additional units to investors at its flagship Newhaven development in East Sussex. The other was for a major development site for which it had received a “substantial unsolicited offer”.