(Adds details on new funds)

LONDON (Thomson Financial) - Braemar Group PLC said its first-half pretax loss widened because of market conditions and that it is unsure if its second-half performance will be sufficient to recover the first-half losses, particularly if the property slowdown continues.

The property investment fund manager posted a pretax loss of 319,000 stg for the six months to Sept 30 against a loss of 187,000 stg last year. Sales from continuing operations fell to 231,000 stg from 586,000 stg a year ago.

The company also said it is disappointed by the extent of the loss in the first half, which was primarily due to deteriorating sentiment towards residential property investment.

However, the continued growth of its apartment management business, which now has almost 2,500 units under management, is providing a stable cash flow for the business going forward and underpinning its working capital position despite the worse-than-expected first half loss, it added.

The company said it will launch two new funds -- a UK farmland fund and a shared ownership fund offering homes to first time buyers -- shortly and that the first closing for each fund is expected to be on March 31 2008.

It added it is planning further coronation funds for early 2008. TFN.newsdesk@thomson.com tsm/jrr

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