Mowlem has announced an expected pre-tax loss of £7.5 million for 2004, following revelations of “historical accounting issues” in the m&e division Mowlem Technical Services.

The company’s finance director Gerald Brown is to leave the company. He is being replaced by Paul Mainwaring, previously of logistics company TDG. Mowlem Technical Services’ finance director Toni Tait is also to leave.

Mowlem has announced two profit warnings in the two months since Simon Vivian, the new chief executive, instigated a review of the business.

Problems in the construction contracts department led to a £15 million write-down just before Christmas 2004. Analysts have criticised Mowlem, following three profit warnings in the last eight months, for being over-optimistic in its forecast of future profits. The company’s annual results are due in March.

Mowlem created its m&e division by buying Dudley Bower in 2000.

Source

Electrical and Mechanical Contractor