A big write-down on assets in Spain and the US has wiped out profits at UK housebuilder Taylor Wimpey.
The global housing slowdown has hit housebuilders
It reported a pre-tax loss of £19.5m in 2007, against profits of £405.6m a year earlier, after it took a near-£300m write-down on land and property.
Taylor Wimpey does not expect the US to improve significantly in 2008, and while UK profits were up in 2007 it expects tough trading this year.
Housing markets are slowing, as the global credit crunch takes its toll.
"Continuing material weakness in the group's US and Spanish markets has resulted in land and work in progress write-downs of £289.7m," the company said.
Pre-tax profits in the UK were £608.5m, a 14% rise on the previous year.
Pete Redfern, group chief executive said: "We continue to anticipate a more difficult trading environment in the UK during 2008. However we have actively positioned the business for more challenging conditions and are well placed for the future."
The group was formed by the merger of Taylor Woodrow and George Wimpey.
The benefits of the merger were especially clear "in the difficult market conditions that we currently face," chairman Norman Askew said.