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Mouchel on track but considers ditching new BSF work

Mouchel is reviewing whether to bid for any more Building Schools for the Future contracts following concerns over souring procurement costs.

The consultant said it would “review its approach” to the £45 billion BSF programme in an interim management statement today.

The statement said: “We are continuing to monitor new contracts in the BSF programme, but in view of BSF's lengthy and costly procurement model, and the fact that we did not proceed beyond the last two in Southwark, we are now reviewing our approach to this market.”

Meanwhile Mouchel said it is on track to meet expectations and said the outlook for the group remains promising.

Its prospects are underpinned by the continuing strong order book and bidding pipeline, which currently stand at £2.1 billion and £2 billion respectively, compared with an order book of £2.1 billion and a bidding pipeline of £2.2 billion last year.

The statement added: “The resilience of our business model means that we continue to be less affected by the recent economic conditions in the UK and elsewhere.

“We are working in markets which generally still present us with opportunities and have very little exposure to the UK commercial property market.”

The group said its financial position is strong, with bank facilities of £185 million in place, of which £125 million expires in August 2012 and £60 million in September 2009.