Profit warning for Mowlem

A profit warning has been issued by Mowlem as it prepares to undergo a review
of its profit recognition and contract valuation, a move its classes as a ‘major

The construction group said that a preliminary review of this assessment had
caused it to revise profits down £20m on market expectations.

Despite the warning, the group said its order book remained at a similar
level to 2004, and its restructuring of its UK construction services business
was largely complete and had lead to savings of £5m a year.

Finance director Paul Mainwaring, appointed to the role in May, is leading
the charge to find a realistic and consistent way to treat contract revenue,
according to a spokesman.

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