Firm blames review of profit recognition and contract valuation for interim loss.
Contractor Mowlem today announced a £73.4m pre-tax loss for the first half of the year to 30 June 2005.
The company said that the huge loss was the result of a review of profit recognition and contract valuation, which caused the significant impact on the balance sheet.
Shareholders’ gloom was heightened by the fact that Mowlem said it would not be paying out an interim dividend.
Mowlem chairman Joe Darby described the first half as a “difficult period of great change,” but chief executive Simon Vivian said that he anticipated “progressive improvement in underlying performance as we strive to increase margins and reduce risk.”
Turnover at the company rose 11% to £1.05bn and it said that its order book stood at £2.3bn.The company’s order book stands at £2.3bn, and recent contract wins include the £450m M1 widening project and the £60m Twickenham contract. It has also been appointed preferred bidder on the £1bn Northwood PFI project for the Ministry of Defence.
