Howard Holdings, a London-listed property company with substantial interests in Ireland, may be the next small capitalisation to be taken private as a result of the negative sentiment in the market towards property firms.

Howard, 40 per cent-owned by three Irish businessmen - its chairman, Mr Frank Gormley, chief executive, Mr Greg Coughlan and former Kingspan Group director, Mr Brendan Murtagh - has reported solid results for the year to the end of April, with pre-tax profits up to £1.32 million sterling (€2.2 million) from £880,000 sterling. The group, however, is heavily indebted and its loan/ratio is 73 per cent - "the maximum level we envisage".

Howard shares, which peaked at 75p sterling this year, are trading at just 40p, valuing it at £10.4 million sterling.

Mr Gormley said: "The negative sentiment in the market place towards property companies and smallcap companies has become more obvious and marked."

Earlier this year, Howard cancelled a move to take a secondary listing on the Irish stock market. "This decision was linked to the current malaise affecting smallcap companies and in particular property companies.

"The future on any stock exchange for such companies remains uncertain."

Mr Gormley told The Irish Times the group was examining various alternatives which might boost shareholder value - merger with another firm, sale of the firm, taking it private or continuing to trade as a plc with the hope that sentiment towards such firms would change for the better. "At some time, the market sentiment might change," he said.

Howard's property business is spilt roughly 50-50 between Ireland and the UK.