Mowlem orders get a 20% boost

Mowlem expects to close the year with an order book worth £2.4bn, 20% higher than at the end of 2001. The group said that it has enjoyed a boost in orders over the past three months.

Chief executive John Gains said: "The prospects for the group remain good."

While there has been a slowdown in commercial building, particularly in the South East, this has been more than compensated for by the increase in infrastructure schemes.

Mowlem is on course to eliminate gearing (ie to become debt free) by the end of the year. A spokesman said: "At the financial half-year, we said there had been a cash outflow in the first six months that may have appeared higher than expected. It took our underlying gearing to 10% to 15%.

"There has now been more cash coming in, giving a reassurance that what we predicted has turned into reality."

Mowlem's future prospects have been boosted by its appointment as preferred bidder on the £400m contract to provide capital works and support services to HSBC's national UK property portfolio.

"Mowlem was not the favourite to win this project, but we got there thanks to offering a lot of innovation," said the spokesman. "It also surprised the market that such a major portfolio wasn't split - many had anticipated a north and south divide."

Mowlem has noted a slowdown in white-collar outsourcing, both in the public and private sector.