The AIM-listed developer says a difficult market is hitting housing margins

Artisan has warned that margins in its housebuilding arm are being hit by static sales.

In a trading update the AIM-listed developer said that a difficult housing market meant sales at its Rippon Homes were proving “hard won”.

In its business park division ADL Artisan said that it was finding fewer suitable sites for future development. However the Board said it was satisfied with the sales and margins in the division.

Artisan said that obtaining planning permission across both divisions was slowing the development of sites. As a result some sales expected in the current financial year will be deferred to the next period.

It said that the outlook for the next period would depend on attracting new sales reservations particularly in the first quarter of 2007.

Shares fell 60p to £2.85 this morning, representing a fall of 17%.

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