Financial turnaround for Mouchel
By Sarah Ann McCay15 December 2013
UK contractor Mouchel reported revenues of £555.3 million (€660 million) and underlying operating profit of £28.1 million (€33.3 million) for the year ended September 30, 2013.
It said the results exceeded its expectations, following the company's buyout by its management and lenders in August 2012.
The company restructured in 2012 after reporting a €76 million loss in the 2011 financial year.
Today, however, Mouchel has plans to recruit 600 engineers to its infrastructure services business in the coming year.
As of September 30, 2013, the company reported contract wins for the year exceeding £1 billion (€1.18 billion), with wins recorded across all business divisions.
These included a five-year contract worth up to £700 million (€830 million) 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.
Mouchel’s order book stood at £2 billion (€2.36 billion) at September 30, 2013, the highest it has been in Mouchel’s 125-year history, and comparable to the £1.7 billion (€2 billion) it reported at the end of financial year 2008.
This year also saw Mouchel complete the acquisition of the 50% share of its joint venture, EnterpriseMouchel.
Grant Rumbles, chief executive of Mouchel, said 2013 had been a year of transformation for the contractor.
"We over-achieved on all of our targets in our business plan. We reduced our cost base by £21 million (€25 million) rather than the planned £18 million (€21 million) and we have a very strong order book today in excess of £2 billion (€2.36 billion).
"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."