Only £4m profit from £1.1bn turnover for Mowlem

Mowlem’s financial results for the six months to 30 June are a woeful read as turnover of £1.1bn generated a profit of little more than £4m.

The group’s poor ongoing performance sits on top of a historic string of woes. Last week Mowlem revealed that there would be exceptional losses of more than £70m as it attempted for the fifth time in little over 12 months to put a cost cap on the mistakes of the past and the group’s flaky accounting systems.

This morning’s figures show that overall, Mowlem made a pre-tax loss of £73m. This follows a £10m loss in the previous full 12-month period.

Chairman Joe Darby said: “While it is disappointing to report such a loss, we have now have improved operating structures, new risk management processes and a new contract valuation policy.”

Mowlem’s new Risk Management Board has been given responsibility for setting policy, major tender reviews and process compliance. Divisional risk committees have been strengthened. All contracts over £3m are subject to risk review.

The restructuring and 200 redundancies resulting from new chief executive Simon Vivian’s review of the UK and Ireland construction division, completed in May, cost £6m. “New senior management teams have bedded down effectively,” Vivian said.