MOWLEM PLC: Company Profile

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NAME: MOWLEM PLC

White Lion Court

Swan Street

Isleworth

Middlesex TW7 6RN

United Kingdom

PHONE: 020 8568 9111

FAX: 020 8847 4802

WEB SITE: http://www.mowlem.com

TYPE OF BUSINESS: Established in 1822, Mowlem has been providing construction and support services to public and private sector customers across a comprehensive range of market sectors.

It offers a full range of construction and support services options, from major building and infrastructure projects through to smaller building and civil engineering works; and from Total Facilities Management through to direct delivery of mechanical & electrical, cleaning and security services.

Mowlem operates through eight principal business units:

(a) Mowlem Building;

(b) Mowlem Infrastructure;

(c) Mowlem Engineering;

(d) Mowlem International;

(e) Mowlem Managed Services;

(f) Mowlem Asset Services;

(g) Mowlem Environmental Sciences Group; and

(h) Mowlem Projects.

SIC: Construction, Business Services

EXECUTIVES: Charles Fisher

Non-Executive Chairman

Simon Vivian

Group Chief Executive

Paul Mainwaring

Group Finance Director

INVESTOR RELATIONS: investors@mowlem.com

NUMBER OF EMPLOYEES: 25,000+

ANNUAL TURNOVER: GBP2 billion

ASSETS: GBP228.4 million

DEBTS: GBP18.9 million

SHAREHOLDERS' EQUITY: GBP187 million

THE TROUBLE: In 2004, Mowlem registered losses of GBP7.4 million (retained loss of GBP19.6 million) compared to earnings of GBP49.8 million a year earlier. According to the company, profitability was severely affected by a number of contract valuation write-downs and one-off charges. These included exceptional operating losses incurred in its building business in Australia; write-downs in the carrying value of certain U.K. construction contracts; and a change in contract valuation and debt recovery assumptions within Mowlem Technical Services, its direct delivery mechanical & electrical business. 

Its Construction Services Division is currently undergoing reorganization, which is expected to cost the company around GBP5 million - GBP6 million in 2005.

On July 7, 2005, Fitch Ratings revised the Outlook on Mowlem plc to Negative from Stable and affirmed its ratings at Senior

Unsecured 'BB' and Short-term 'B'. This came following the latest profit warning by Mowlem, its fourth since June 2004, that results for the financial year ending December 2005 would be significantly below current market expectations, due to an ongoing review of its accounting practices of profit recognition and contract valuation. The change in Outlook reflects Fitch's concerns that the GBP20-million profit reduction outlined by management may involve lower cash flow generation over the remaining term of Mowlem's affected contracts. Furthermore, this is only a preliminary assessment and is subject to the completion of Mowlem's internal review, which may yet see additional cash or non-cash charges being required.

A full copy of the company's 2004 financial report is available free of charge at http://bankrupt.com/misc/Mowlemplc(2004).mht.

CREDITORS: HSBC BANK PLC

8 Canada Square

London

E14 5HQ, United Kingdom

Phone: +44 (0)20 7991 8888

Web site: http://www.hsbc.co.uk

NATIONAL WESTMINSTER BANK PLC

135 Bishopsgate

London

EC2M 3UR, United Kingdom

Phone: +44-20-7672-1931

Web site: http://www.natwest.com

LLOYDS TSB BANK PLC

Customer Service Centre

Box 1, BX1 1LT

Phone: 020 7356 2493

Web site: http://www.lloydstsb.com

AUDITORS: KPMG AUDIT PLC

8 Sailisbury Square

London

EC4Y 8BB, United Kingdom

Phone: +44 (0) 20 7311 1616

Fax: +44 (0) 20 7311 8171

Web site: http://www.kpmg.co.uk

Chartered Accountants
Registered Auditor

STOCKBROKERS: HOARE GOVETT LIMITED

250 Bishopsgate

London

EC2M 4AA, United Kingdon

Phone: 020 7678 8300

REGISTRARS: Computershare Investor Services PLC

PO Box 82

The Pavilions

Bridgwater Road

Bristol

BS99 7NH, United Kingdom

Phone: 0870 702 0000

Web site: http://www.computershare.com