Shares in Diploma Group have plunged after the construction and development company lodged a $644,000 loss for the half year ended December 31.
Diploma's revenue fell 51 per cent to $61.6 million, down from $126.8 million in December 2009.
At close of trade today, Diploma shares had dropped 38 per cent to trade at $0.16.
"The result has been impacted by a slower take up of completed stock on the Rise development and delayed starts on a number of construction projects," Diploma said in a statement to the ASX.
"There was also minor contribution from the development division during this period as projects are forecast to complete in the second half of FY11."
The group said it held $520 million in development work over the next three financial years.
Diploma said its domestic construction division is currently tendering on $165 million of new projects, while its United Arab Emirates construction division was tendering on AED $200m worth of new projects.
The group said it has around $85 million in pre-sales in place for the second half of FY11, but settlement dates which occur around the cusp of the financial year end may result in uneven profit results from half to half.
Three development projects, Zenith, Foundry and Cove, are expected to settle prior to 30 June 2011.
"The business remains in a sound financial position and the company expects to report a stronger second half" managing director Nick Di Latte said.
"Diploma's combined construction and property portfolio is in excess of $1.1bn which will complete over the following three financial years.
"This strong forward order book and Diploma's diversified operations places the company in an excellent position for FY12 and beyond."
Diploma will not pay an interim dividend for the half.
