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Gleeson expects further losses

Gleeson is making provisions for more losses in its building division, which it is selling to a management buyout.
The company announced the MBO in March after the building operation lost £16.6 million in the first half of the year.

But the firm said today: 'Further substantial potential losses have been identified on a number of recently completed contracts for which the final accounts have not been

settled.

'Provision for these losses will be made in the results for the year to 30 June 2005.'

Following the confirmation of the MBO - expected shortly - Gleeson will treat the losses as exceptional costs on a discontinued operation.

The losses at the troubled division will lead to results 'significantly below expectations', with a reduction in the company's overall net assets.

But the firm added that it had continued confidence in its core divisions of property, house building and civil engineering.

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