Mouchel announces £65m loss following a ‘disappointing’ year
Support services group Mouchel has announced a pre-tax annual loss of almost £65m following a ‘disappointing’ year.
The troubled local government contractor revealed yesterday a 13% drop in revenue in its preliminary results for the year ending July, from £632.6m in 2010 to £551.4m in 2011.
Grant Rumbles: ‘Economic downturn and government steps to reduce public spending have continued to influence Mouchel’s results.’
The firm also announced it had agreed amendments to the terms of its principal banking facilities, which expire in March 2014. The deal includes a £129m loan and revolving credit facilities worth a total of £51m.
‘The economic downturn and government steps to reduce public spending have continued to influence Mouchel’s results this year,’ said chief executive, Grant Rumbles.
‘Mouchel has a strong underlying business with great staff who help to transform client organisation and to deliver excellent services to the public,’ he added.
‘We have a new management team and we will take firm and decisive action to meet the challenges we face. We will work closely with all stakeholders to reduce debt, restore stability and return to business growth.’