Builders' bosses pay the price of failure

Article Abstract:

The UK construction industry faces job losses amounting to 20,000, and construction industry bosses have been among those faced with redundancy. John Mowlem's chief executive, John Marshall, and Peter Costain from Costain gave both left their posts followed by Robert Sellier, chief executive at Y.J.Lovell. All three companies have been hit by the recession in the UK building trade. Downsizing may lead to further management changes, but the industry faces problems such as a cut in government spending for which easy solutions cannot be found.

Economic aspects

Private finance initiative: help needed

Article Abstract:

The UK construction industry is seeking support from the government in the Nov 1995 Budget. The private finance initiative (PFI) was geared to boosting construction in the public works sector, and the industry is hoping for encouragement for the PFI. The PFI began in 1992 but only 1.5 billion pounds sterling of contracts have been awarded. Divisions within the industry could become wider as a result of the PFI. Companies argue that they may have to move resources to other activities if the PFI is not boosted.

Building, Developing, and General Contracting, GENERAL BUILDING CONTRACTORS, Public Building Construction, Public works, Economic policy

Delayed departure

Article Abstract:

John Mowlem has sold a stake of 90% held in London City Airport (LCA) to Dermot Desmond, an entrepreneur, for 14.5 million pounds sterling. LCA needs investment and has reported operating losses in the decade to 1995, though could be profitable in 1996. John Mowlem shares rose following the sale announcement. Other sales of loss-making activities are likely. Restructuring and write-down will mean a loss of some 30 million pounds sterling for 1995.

Industrial Nonbuilding Structure Construction, Airports, flying fields, & services, Airports Construction, Mergers, acquisitions and divestments, Airports, Airport construction, John Mowlem and Company PLC