Homebuilder McInerney has reported an operating loss before tax and exceptional items of €22.1 million for the first six months of 2008 due to the downturn in the housing market.
This compares to an operating profit before tax of €9.2 million for the corresponding period in 2007.
The company wrote down the value of its landbank by €27.6 million and incurred an exceptional charge of €4 million as part of a cost rationalisation programme.
It said that its landbank continues to have a surplus above written down book value, but that the position regarding land value would be kept under review as conditions in the market develop.
The company said it had experienced "unprecedented weakened conditions" in its UK and Irish markets since earlier this year.
"This is due in the main to the reduced availability of mortgage funds in both markets, leading to further erosion in consumer confidence," it said.
McInerney completed 423 houses in the first half of 2008 compared to 703 in the first half of last year.
It said that current trading circumstances have put pressure on some of its banking covenants and that the group's banking covenants in Ireland have been adjusted in consultation with its principal lenders. The new covenant structure is primarily based on cash collection and sales, rather than earnings, McInerney said.
It is currently negotiating a similar revision of its banking facilities with its lenders in the UK, it said.
The current business environment for both its main markets continues to be highly challenging, said chairman Ned Sullivan, adding that the autumn selling would provide greater clarity on anticipated performance for the year.