John Mowlem pulls out of housebuilding
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.JOHN MOWLEM, the lossmaking construction company and owner of London City Airport, yesterday sold its housebuilding operation to Beazer, the recently floated builder, writes Tom Stevenson.
Mowlem had flagged the disposal in March when it announced losses of pounds 124.2m and staged a pounds 63m rights issue.
Beazer paid pounds 31m out of cash resources, which in March stood at pounds 74.5m. It bought 1,550 development plots on 23 sites with a net asset value of pounds 30.2m.
Dennis Webb, Beazer chief executive, said the acquisition was in line with the company's plan to spread its activities further south. It represented an average of pounds 18,000 a plot, on which Beazer would be building houses with an average selling price of pounds 82,000.
At the time of the rights issue John Marshall, chief executive of Mowlem, said the company could not afford to fund the working capital needed by the homes division to take advantage of improvements in the housing market.
Having put London City Airport up for sale as well, Mowlem is now focused on its core contracting and scaffolding operations.
Analysts do not expect Mowlem to make a profit until 1997. Its shares closed 1p lower at 104p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments