Mowlem was one of the largest construction and civil engineering companies in the United Kingdom.
The company was established as John Mowlem and Co.byJohn Mowlem and initially worked on behalf of various local authorities across London. It expanded throughout the nineteenth century, taking on increasingly prestigious undertakings. The company received the first of several Royal Warrants in 1902. One year later, John Mowlem and Co. was briefly incorporated before being reorganised as a partnership once again; the business was long operated by successive generations of the Mowlem and Burt families, including George Burt, and Sir John Mowlem Burt. During 1924, the company went public on the London Stock Exchange.
Throughout the Second World War, the company worked on numerous contracts issued by the British government, including the construction of the Mulberry harbour units. After the end of the conflict, it continued to developed its network of regional contracting businesses, often via acquisitions. During 1971, the company expanded overseas via its stake in the Australian contractor Barclay Brothers, which it would later take whole ownership of. Mowlem entered the private house building sector during 1986 although, following a recession during the early 1990s, it sold on the housing division to the rival homebuilder Beazer in 1994.
The mid-2000s was a period of great change for Mowlem. It entered a period of financial difficulties in part attributed to several high-profile projects not going to plan. After losses totalling £73.4 million were recorded in 2005, its construction services operation was restructured and 300 jobs were lost at the company. During December 2005, it was announced that rival contracting company Carillion was acquiring Mowlem for £291 million. Use of the Mowlem name was discontinued soon thereafter.
The firm was founded as John Mowlem and Co. by the stonemasonJohn Mowlem in London in 1822.[1] The company undertook a variety of jobs across London throughout the mid-nineteenth century; early activities were centred around paving and roadworks at the behest of various local authorities. The business was able to expand considerably towards the end of the century, permitting it to perform prestigious activities, such as its involvement in preparatory works at Westminster Abbey for the Diamond Jubilee of Queen Victoria in 1887.[1] During 1902, the company received a Royal Warrant from the Prince of Wales in recognition of the quality of its workmanship; additional warrants would be received in 1910 and 1920.[1]
By this time, John Mowlem and Co. had become a partnership that was operated by successive generations of the Mowlem and Burt families, including George Burt, and Sir John Mowlem Burt.[2] George Mowlem Burt, a civil engineer and grandson of George Burt, has been credited with successfully guiding the company through the construction of various large scale public works, including the Admiralty Arch and the Port of London Authority Building, as well as various maintenance contracts on behalf of the Office of Works, amongst others.[3] The company was briefly incorporated during 1903, but reverted back to being a private company in 1908.[1] During 1924, the company went public on the London Stock Exchange.[4]
During the Second World War, the company's reputation from its works during the interwar period led to it being awarded numerous contracts from the British government.[1] One particularly high-profile project that it was a contractor upon was the construction of the Mulberry harbour units.[5] Other wartime construction projects included the Royal Ordinance Factory Swynnerton as well as numerous tunnels and runways; the associated contracts were collectively valued at £29 million.[1]
Having developed itself as a long-standing national contractor, Mowlem developed a network of regional contracting businesses including Rattee and Kett of Cambridge (bought in 1926); E. Thomas of the west country (bought in 1965) and the formation of a northern region based in Leeds in 1970.[6] This network was further augmented by the acquisition of Ernest Ireland of Bath during 1977,[7] as well as the purchase of McTay Engineering of Bromborough together with its shipbuilding subsidiary McTay Marine during the late 1970s.[8]
During 1971, the company expanded overseas via the purchase of a 40% shareholding in the Australian contractor Barclay Brothers, in which it later took total ownership of. The Australian business, re-branded Barclay Mowlem, expanded into all other Australian mainland states, except South Australia, as well into Asia.[9][10] In 1982, the partent company was re-registered as John Mowlem and Co. plc.[1]
During 1986, Mowlem acquired the scaffolding specialist SGB Group;[11] its purchase of Unit Construction that same year gave the company a substantial presence in the private house building sector. Within two years, sales were up to an annual rate of 1,200 homes. However, a recession during the early 1990s led to Mowlem incurring losses in excess of £180m between 1991 and 1993, which placed pressure upon its banking covenants that compelled it to respond. During 1994, the company divested itself of its housing division via its sale to the rival homebuilder Beazer.[12][13] The company also opted to sell off SGB during the late 1990s.[14][15]
In 1984, a joint venture between Mowlem and GEC was awarded a contract to deliver the Docklands Light Railway (DLR), a fully automated transport system using light rail vehicles serving the redeveloped Docklands area of London.[16] Over the next two decades, the DLR would prove to be quite lucrative for Mowlem.[17]
During the mid-2000s, Mowlem entered into a period of financial difficulties; in 2005 alone, it issued four separate profit warnings and recorded losses totalling £73.4 million.[18][19] Several projects undertaken by the firm, such as the Spinnaker Tower in Portsmouth and the Bath Spa, had encountered considerable difficulties.[20][21] Simon Vivian, the company's chief executive, ordered a financial review of its ongoing projects along with the restructuring of its construction services operation, splitting it into three divisions (Mowlem Building, Mowlem Infrastructure and Mowlem Engineering) and enacting roughly 300 job losses.[18][6][22]
During December 2005, it was announced that rival construction company Carillion was set to acquire Mowlem in exchange for £291 million.[18][23] The two companies were considered to be a good fit for one another, both having heavily involved themselves in various private finance initiative (PFI) schemes, taking on various responsibilities and functions traditionally performed by national governments. After the acquisition was completed, Mowlem ceased to exist as an entity, having been absorbed into Carillion's operations.[24][25] Carillion's management publicly expressed the view that the Mowlem acquisition had led to some difficulties for the company.[26]
