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Date: Wednesday 27 Aug 2008

LONDON (ShareCast) - Construction materials supplier Ennetone slashed its interim dividend by half as it contends with the difficult market conditions and warned of an "uncertain" outlook.

The group, which provides aggregates, asphalt and concrete products, said as the half-year ended it started to see a hardening of the UK market with a sharp reduction in house building and construction activity.

“While we remain confident about the fundamental strength of the Group's operations, its market position and its competitiveness, the continuing difficult trading conditions in the US and the sharp downturn in the UK makes the short to medium term outlook uncertain and the Group expects a further period of challenging operating conditions,” it said.

The slashing of the interim dividend to 0.23p from 0.47p previously, reflects the current environment, said the group.

The group however believes that in can weather the tough economic climate and emerge from it in a strong position.

Pre-tax profit for the half-year rose 15.1% to £12m on revenue that increased to £134m from £112.7m before.

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