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Mouchel signs up RBS, Lloyds and Barclays

Mouchel signed a debt deal with RBS, Lloyds and Barclays on Friday giving the firm a £190 million overdraft facility for the next three years.

The new banking facility will provide the infrastructure services company with more stability going forward as well as opening up opportunities for acquisitions.

Mouchel chief executive Richard Cuthbert said he would look to make acquisitions when he was confident the time was right.

He said: “The new banking facility gives us scope to make acquisitions in the future.

“But, on the pricing front, I don’t think now is the time to be bidding. We would prefer to buy private companies.

“But price expectations of private firms have not quite come down to where the stock market is as yet. There is a lag behind the stock market.”

Mouchel reported a 25 per cent rise in pre-tax profit today 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.

Mr Cuthbert added: “We will continue to focus on the UK public sector working on vital infrastructure and essential services.

“We are in areas of unspectacular but steady reliable growth.”

But Mouchel has had to shed 200 jobs in Dubai to cut costs where projects have stalled.

Mr Cuthbert said: “Nobody is saying it is easy at the moment and we have a few soft areas in the business.”