Group warns of lower-than-expected profits as contract costs and £15m write off in Australia threaten to spoil results.
Mowlem has announced that its 2004 profits will be adversely affected by £8m costs incurred on some support services contracts.
The Group said that profit for the year end December 2004 would be at the lower end of expectations.
Mowlem also announced a £15m write down of the contracts held by Australia subsidiary Barclay Mowlem. The announcement followed news of a £12m exceptional loss by the same company in September following project delays.
The Board said that underlying prospects for the Group’s Construction Services and Support Services arms remained good, despite the difficult trading conditions in the second half of the year.
John Gains is due to be replaced as chief executive by Simon Vivian at the end of the financial year. He said: “Given the prevailing climate within the industry and the fact that I have decided to hand over my responsibilities as chief executive to Simon Vivian at the end of this financial year, I wanted to ensure that we had taken a prudent view of Mowlem’s current position."
