Speymill, the property investment manager, today said it expects to make pre-tax losses for the financial year because of problems at its contracting business Speymill Contracts.

The news brought Speymill’s shares to 10.5p, a new low for the year.

The company’s share price peaked for the year in April at 58p.

In November the company, chaired by Jim Mellon, said complexities relating to Speymill Contracts' projects meant there was an uncertain outlook for its 2008 results.

But today it estimated that the impact of these problems would mean the company will break even.

However, the announcement said the company would reduce the value of its £944,000 goodwill on the balance sheet meaning it would make a loss.

Speymill also said it is expecting a reduction in Speymill Contracts’ pre-tax profits for 2009 after a major client ended its development contract due to the downturn.

Speymill said it was continuing with measures to reduce costs at Speymill Contracts.