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Mouchel announces 25pc profit rise and a new chairman

Mouchel today reported a rise in pre-tax profit of 25 per cent as it announced the appointment of new chairman Bo Lerenius.

The infrastructure services company reported pre-tax profit of £16.3 million for the six months to 31 January, up from £9.3 million a year earlier.

Revenue grew 19 per cent to £365.6 million from £308.1 million helped by acquisitions and the Government’s “fiscal stimulus” initiative.

The company, which provides services mainly to local and central Government, also said director Bo Lerenius would succeed Richard Benton as its chairman with effect from 1 May.

Mr Benton is standing down after 11 years with the group.

The group has an order book of £2 billion with a bidding pipeline totalling a further £1.9 billion.

Mouchel successfully renegotiated its banking debt facilities totalling £190 million for the next three years.

Mouchel chief executive Richard Cuthbert said: “Our business model continues to be focused on the UK public sector and on the provision of essential services and the maintenance of vital infrastructure.

“This is proving to be particularly resilient in the current environment and we have again increased revenues and improved margins.

“We continue to face challenges in the Middle East and in rail and we are currently taking the necessary steps to ensure that we have the right cost base going forward in order to meet our aspirations for future growth.

“However, both our contract order book and bidding pipeline remain strong and we have recently renewed and extended our banking facilities, as a result of which we remain confident about our long term prospects.”