The company behind the controversial Caltongate development in Edinburgh has said losses of more than £24million will not stop them pushing ahead with the project.

The £300million proposals for homes, offices, a hotel and conference centre, were green-lighted last summer.

Heritage groups and local residents, however, expressed opposition to the development, with 2000 objections lodged.

Developers Mountgrange has insisted their financial situation might affect their timescale, but not the outcome.

Mark Cummings from Mountgrange said: “I think it has to be remembered that Mountgrange, like every property company, is experiencing a downturn in market conditions and the current bank situation doesn't help.

“It affects our ability to implement quickly and in the way we want to.

“But in terms of the long-term prospects for the Caltongate scheme here in the capital, we remain fully committed to that and believe it’s a great project for us to be taking forward.”