Carillion rules out Mowlem write-downs

Carillion chief executive John McDonough today ruled out any more write-downs on contracts related to its Mowlem acquisition.

Carillion chief executive John McDonough today ruled out any more write-downs on contracts related to its Mowlem acquisition.

He said there would be no further write-downs or provisions and that the integration of Mowlem was now complete.

"The integration is done and dusted, so the risk of the integration is behind us," he said. "Which is good news because we entered the year with the acquisition and there's been a lot of risk."

Mowlem was part of the consortium which built the recently opened Dublin Port Tunnel.

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These words will reassure investors, which in April saw Carillion reveal further write-downs on problematic Mowlem contracts worth £95 million, on top of the initial provision of £45 million.

"We are very comfortable with our position in the contracts we inherited from Mowlem and the provisions that we have taken," Mr McDonough added.

Updating the market ahead of full-year results on March 7th, the support services and construction company today said trading conditions in the second half of 2006 had remained positive and the company expects to deliver earnings ahead of the current consensus forecast.