Strong results for Mouchel

12/12/2013
Highways Reporters

Mouchel, the international infrastructure and business services group, has announced its results for the year ended 30 September 2013.

The company achieved revenue of £555.3 million and an underlying operating profit of £28.1m. Underlying cash generated (used) in operations was £39.3m.

Overall financial performance was ahead of the board's expectations across revenue, profitability and cash generation.

Business highlights included:


  • The operational restructuring programme which commenced in early 2012 was completed at the end of March 2013 and the group is delivering on all of its strategic objectives


  • Planned recruitment of 600 engineers to the Infrastructure Services business over the next 12 months, including apprentices, technicians and graduates to reflect the strength and visibility of order book


  • Over £1bn contract wins in the year ended 30 September 2013 across all business divisions, including:




  1. A five-year contract worth up to £700m to operate and maintain the motorway and trunk roads in Area 3 in southern England for the Highways Agency, the group's largest-ever contract


  2. A five-year contract worth £125m to our TranServ joint venture for the management and maintenance for the south west region of the Scottish Trunk Roads network for Transport Scotland


  3. A three-year contract extension worth approximately £50m for the provision of business and ancillary services with the Unity Partnership, its joint venture with Oldham Council.




  • Completion in February 2013 of the acquisition of the 50% share of its joint venture, EnterpriseMouchel, that the group did not already own


  • Order book of £2bn today up from £1.7bn at the year-end matches 2008 level, the highest it has been in Mouchel's 125-year history


  • Strong pipeline of opportunities worth £2.1bn. Leads and prospects amount to over £5bn.


Grant Rumbles, chief executive of Mouchel, said: "2013 has been a year of transformation for Mouchel. We over-achieved on all of our targets in our business plan. We reduced our cost base by £21m rather than the planned £18m and we have a strong order book today in excess of £2bn. I am delighted to announce we are also recruiting again, 600 engineers in the next year alone. All of this demonstrates our long-held view that with the right debt structure, cost base and leadership team Mouchel is a profitable company with a strong and sustainable future. We have created an excellent platform for further progress, with scope for significant turnover and margin growth, and look forward to the next year with confidence."
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