Real estate firm Humberts Group has slipped into the red and is in potential takeover talks.

The Aim-quoted company has incurred a £18.4 million goodwill write-down. It has reported a full-year pre-tax loss of £17.5 million, against £1.4 million profit a year earlier.

Talks are being held with a third party regarding a possible offer for the group. It has also received additional approaches and discussions with these parties have begun.

The company said that the current uncertainty in the markets continues to have a negative effect on the volumes of house sales actually being exchanged, and current indications are that there is little improvement in the second quarter.

Shares in the group slipped 2% to 10.75p.