Mowlem chief executive Simon Vivian said: 'This more prudent approach to profit recognition complements our previously announced moves to strengthen financial and commercial controls and introduce new risk management processes.'
Mowlem's new management team - headed by Simon Vivian who joined in January - restructured its construction division and made 200 redundancies. This is expected to save the firm £5 million a year.
During a review of the business, the company found that its long term strategy was being inhibited by overly complicated management structures and poor internal processes.
Mr Vivian overhauled its risk management to improve the quality of work it takes on and installed a risk management board to set policy, tender reviews and process compliance. Divisional risk committees were also beefed-up so that all contracts over £3 million are now subject to an assessment.
Its infrastructure business channelled its efforts into the highways rail and utilities sector and won the £429 million Early Contractor Involvement deal to widen the M1. But it plans to exit a number of smaller under-performing businesses.
Legacy issues in its loss-making Australian business, Barclay Mowlem, were addressed and it reduced its exposure to construction work to concentrate on rail and infrastructure.
Last week Mowlem was selected as preferred bidder on the £1 billion Northwood PFI project for the Ministry of Defence.