Profit warning for Mowlem
Mowlem issues profit warning as new FD looks for consistent approach to contract revenue
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.