Quintain Estates & Development has warned there is 'material uncertainty' around its ability to continue as a going concern.

The turmoil in the property market has caused the value of Quintain’s assets, including projects in London at Wembley and Greenwich, to tumble, putting pressure on its lending covenants.

The company, led by Adrian Wyatt, has renegotiated terms on its short-term and long-term debt, limiting gearing at 150% against the present 105%, but plans for a £100m equity raising broke down in April.

The company said: 'Although the directors have no reason to believe that they will not be able to complete these initiatives successfully if necessary, and therefore believe that it is appropriate to prepare these financial statements on a going concern basis. However, they consider that this gives rise to a material uncertainty which may cast significant doubt on the ability of the group to continue as a going concern.'

Daily Telegraph