£50m property hit hurts Redbus

LOSSES at Redbus Interhouse widened to £65m in the 12 months to 31 December after the group booked a £50.2m write-down against the falling value of its properties.

Redbus, which houses other firms' computers, said the move reflected lower-than-expected growth across the 'internet hotel' industry. Sales nearly tripled to £9.3m but group assets are now just £27.4m against £92m at the end of last year. Chairman John Porter said an occupancy rate - currently 22% - of 40% would enable Redbus to break even in 2003.