The credit crunch hit the results of two small housebuilders this week.

Pre-tax profit at Yorkshire-based Strata Homes fell by nearly a third, from 拢9.7m in 2006 to 拢6.9m in 2007. Turnover dipped 2%, from 拢80.7m to 拢79.2m. The firm blamed the results on the 鈥渦ncertain鈥� economic environment.

Strata鈥檚 interest cover was down from 8.5 last year to 4. This measures earnings before interest and tax, divided by net interest paid and is a measure of a company鈥檚 ability to cover its debt. A figure of two or above is generally considered safe.

London firm Telford Homes issued a statement saying trading would be down in the year beginning 1 April and that its approach would be 鈥渃autious鈥�.

Kevin Cammack, an analyst at Kaupthing Bank, said Telford鈥檚 statement for the year to 31 March 2008 was not as bad as feared given that the company expected to make a 拢13.5m pre-tax profit on turnover of 拢104m.

He said: 鈥淭elford is confident that its focus on east London, the Olympic factor and its relationships with housing associations will deliver growth.鈥�

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