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More pain for AWG as bad jobs bite

FINANCE

CONSTRUCTION losses continue to spiral upwards at AWG after the utility-to-contracting firm was again hit by bad jobs.

The construction arm lost £14.8 million in the year to March 2004. It had a deficit of £5.5 million in the previous year.

The Northamptonshire Rockingham speedway contract dispute hit AWG for at least £2.5 million but the construction operation has a £504 million order book and 80 per cent of this year's forecast workload.

The firm was also hit by the reassessment of costs on a number of large contracts.

The division is chasing lower-value work and more framework deals but this sent bid costs shooting up £1.7 million to £10.6 million.

Excluding exceptional items and bid costs, the construction business made a profit of just £900,000 against £5.1 million in 2003.