Ennstone slashes dividend

(Reuters) - Concrete supplier Ennstone halved its interim dividend on Wednesday and warned its outlook is uncertain as volatile trading conditions in the UK and U.S. housing markets persist.

The company declared an interim dividend of 0.23 pence, down 51 percent over last year's 0.47 pence.

Shares in Ennstone were down 6.35 percent at 14.75 pence at 1:05 p.m.

Ennstone said further repayments on its U.S. debt, of 4 million pounds and 5 million pounds, are scheduled for June 2009 and December 2009 respectively.

It said it expects to meet the estimated repayments scheduled for 2009 from the sale of its U.S. assets.

On Aug 11, the company had said it agreed revised covenants for its U.S. facilities, which are likely to require an additional injection of funds of about 11 million pounds by the end of this year, which may be found by way of asset disposal or other means.

The company posted a 8.8 percent rise in pretax profit for the six months to end-June, at 5.7 million pounds on revenue of 134.2 million pounds, boosted by a solid UK performance.

However, the company said the continuing difficult trading conditions in the United States and the sharp reduction in house building in the UK as the period ended made for "challenging operating conditions" ahead.

Last month Ennstone said it was likely that turnover and profitability for the year ending December 31 will be materially below current market expectations in the uncertain environment.