Profits from support services at Mowlem rose 45% last year, with margins up 40% to 3%. Mowlem's facilities services division Aqumen increased its operating profit by 61% to £5m compared to £3.1m in 1999 on turnover of £150m (£146 m).

Aqumen has succeeded in further broadening its client base beyond the public sector, which now represents less than 50% of turnover. Private sector clients now include Axa, Barclays, Norwich Union, Astra Zeneca, GlaxoSmithKline and Pret a Manger.

As preferred service partner to the Mapeley consortium, Aqumen has begun preparatory work to deliver facilities management services to the Inland Revenue and HM Customs & Excise across the UK under the STEPS PFI.

The company says that Dudley Bower, acquired in July, has exceeded its expectations, bringing additional competences in mechanical and electrical installation and maintenance which have "expanded Aqumen's direct service delivery offering and unlocked further business opportunities."

Operating profit for the group, which is still listed under construction, was up 40% to £22.6m (£16.2m) on turnover of £1,387m (£1,335m) with pre-tax profit rising 45% to £24.5m (£16.9m). Chief Executive, John Gains, said: "The successful disposal of the stake in SGB Group and further targeted acquisitions in the services sector have helped us to tighten the focus on our portfolio of continuing activities."

Mowlem says it has put in place measures to ensure it benefits from synergies across the group. It cites Humberside Magistrates Courts, Leeds schools and Cornwall schools as examples of its integrated approach under PFI but says this has also been successful in achieving strategic partner status for the DERA project and participation in the Prime Contracting (MoD) and Procure 21 (NHS) programmes.

Richard Byatt