Mowlem post £21m pre-tax profit but result is marred by £12m exceptional loss in Astralia.
Mowlem has announced an interim pre-tax profit of £21m but an exceptional cost of £12m took the shine off the results.
The Group said that its results for the six months to 30 June 2004 were overshadowed by the £12m charge, which was due to construction delays in Australia.
In the areas of UK construction, facilities management, direct delivery and PFI Mowlem said it had performed strongly. The company reached financial close on two PFI projects and has been named preferred bidder on four new projects.
Turnover of £957m remained static as growth in Support Services was countered by a fall in turnover in the Construction Services division, which Mowlem blamed on a fall in UK infrastructure spending.
Mowlem chief executive John Gains said: “Although trading elsewhere within the Group was satisfactory, the first half of the year has been overshadowed by the £12m charge we reported to the market in June in respect of exceptional operating losses incurred in our building business in Australia.”
“The problem contracts have been fully provided for. We remain confident about future prospects for the group.”
