UPDATE 1-Ennstone sees difficult UK market, slashes dividend

(Adds details on U.S. covenants; broker comments)

Aug 27 (Reuters) - British concrete supplier Ennstone Plc ENN.L halved its interim dividend on Wednesday and warned its outlook is uncertain as volatile trading conditions in the UK and U.S. housing markets persist.

The company declared an interim dividend of 0.23 pence, down 51 percent over last year's 0.47 pence.

Shares in Ennstone were down 6.35 percent at 14.75 pence at 1205 GMT.

Ennstone said further repayments on its U.S. debt, of 4 million pounds and 5 million pounds, are scheduled for June 2009 and December 2009 respectively.

It said it expects to meet the estimated repayments scheduled for 2009 from the sale of its U.S. assets.

On Aug 11, the company had said it agreed revised covenants for its U.S. facilities, which are likely to require an additional injection of funds of about 11 million pounds by the end of this year, which may be found by way of asset disposal or other means.

The company posted a 8.8 percent rise in pretax profit for the six months to end-June, at 5.7 million pounds on revenue of 134.2 million pounds, boosted by a solid UK performance.

However, the company said the continuing difficult trading conditions in the United States and the sharp reduction in house building in the UK as the period ended made for "challenging operating conditions" ahead.

Last month Ennstone said it was likely that turnover and profitability for the year ending Dec. 31 will be materially below current market expectations in the uncertain environment.

The company also said it cut its capital expenditure estimates for 2008 and 2009, following a "review of balance sheet initiatives" undertaken in July.

It will now have a reduced capital expenditure requirement for 2009 of not more than 10 million pounds, compared with an annual depreciation charge of about 20 million pounds, it said.

The company said it does not anticipate making any further acquisitions in the short to medium term and in any event not prior to creating further headroom through asset disposals.

Separately, Altium Securities, which has a "hold" rating on the company, said it is not changing estimates at this stage, following the revision to estimates on Aug. 11, reflecting the U.S. banking covenant renegotiation, coupled with the interims meeting expectations.

Earlier today, Britain's most popular housebuilder, Taylor Wimpey (TW.L), slumped to a 1.54 billion pound pretax loss on falling property values and merger costs and said it has yet to agree a crucial loan deal with its banks. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Richard Hubbard)