Developer Quintain has taken a £2.7m hit on its pre-tax profit after paying for a temporary replacement for the Wembley Arena.

Announcing interim results for the six months to 30 September, the firm reported that its pre-tax profits has fallen by more than half, from £4.8m to £2.1m.

Turnover during the same period dropped 16% to £23m.

However, the firm’s net asset value per share rose from 363p to 431p, an increase of 18.7%.

The temporary venue was needed because Quintain is revamping Wembley Arena. It has recently signed a 15-year contract with a “world class promoter” for the new facility.

Chairman Nigel Ellis said: “Mindful of the need to keep music alive at Wembley, so protecting the operational business and enabling us to deliver the deal set out below, the board took a difficult decision to open and maintain the temporary pavilion, despite a challenging year when many high-profile stars cancelled tours.

“The cost of the building was fully provided for at the half year giving rise to a £2.7m loss.”