Network Data Holdings has seen group turnover drop by 34% to £10.6m in H1 2008, compared to £16.1m in H1 2007.
The group saw a trading loss of £132,000 in H1 2008, compared to a £1m profit in H1 2007, due mainly to the closure of loss-making subsidiary Hipstar which made a loss before tax of £1.5m in H1 2008.
Its appointed representative network Network Data broke even in the first half of 2008 in line with its £1.2m profit in H1 2007, while Network Surveyors saw a loss of £134,000 in H1 2008.
Richard Griffiths, chief executive of Network Data, says: “As indicated in our July trading statement, revenues in the first half of 2008 have been below original expectations.
“This has resulted from the faster than expected decline in transactions in the mortgage and property markets which has received extensive coverage in the national media throughout the course of 2008.
“Faced with this difficult property market, we announced in August that we would be closing our loss-making Hipstar subsidiary which was formally placed into liquidation on September 12.
“The group has been also actively involved in reducing its cost base throughout the year which has resulted in the ongoing activities trading close to break even in the first half despite the exceptional falls in market activity.”
He says the group continues to aggressively pursue cost reductions with a view to improving trading performance in the face of a challenging market.