MCHL Mouchel Group

RNS Number:9072M
Mouchel Group plc
31 January 2008


                               MOUCHEL GROUP PLC

                            Pre-Close Trading Update

Mouchel Group plc, the consulting and business services group, today reports on
trading for the six months ended 31 January 2008, prior to entering its close
period.

The Group remains on track to deliver performance in line with the Board's
expectations for the year to 31 July 2008 and the longer term outlook remains
favourable.

During the first six months of the year, the Group has enjoyed further
significant success in positioning and tendering for new work.

In Highways, preferred bidder status has now been secured on the Highways Agency
Super Agency commission in the South of England (Area 3) and the business has
been awarded a number of new infrastructure design appointments including, most
notably, for the A5 Western route corridor in Ireland. Mouchel also expects to
be appointed to provide highways design services under a top up contract with
Stirling Council, which is a strategically important award, given the potential
to bid for larger integrated services in future. The Group is also currently
negotiating a potential three year extension to its existing highways and
transportation commission in Hertfordshire.

Looking forward, procurement has now commenced for the next tranche of Highways
Agency Super Agency contracts where Mouchel expects to be invited to tender for
a number of new opportunities. In the local government area, the Group is also
currently bidding for a range of highways and transportation contracts which
also include the provision of integrated maintenance management and contracting
services.

In Government and Business Services, the integration of HBS continues to proceed
to plan and the business is on track to deliver the synergies and improvement in
profitability in line with the targets outlined at the time of acquisition in
August 2007. The business has successfully secured an extension to its existing
BPO contract with Lincolnshire County Council and has also recently won
commissions to deliver payroll and pension services to the police forces in
Nottinghamshire and North Yorkshire respectively. The BSF contract in Hackney is
planned to reach financial close in Spring this year and the Group has just been
appointed as preferred bidder on a contract to provide property services in the
Northern area of the Metropolitan Police Authority.

Further bundled services opportunities are still being pursued in Merseyside,
Yorkshire and the North East with, in all three cases, bids either currently
under preparation or submitted and awaiting award. Discussions continue with
Oldham Metropolitan Borough Council around extending the scope of services
currently delivered by the Group and bidding has also now commenced on the
Southwark BSF opportunity.

Overseas, the Group continues to pursue infrastructure master planning, design
and programme management opportunities in the Middle East.

The Group's prospects are underpinned by the continuing strong order book and
pipeline which currently stand at �2.3bn and �2.1bn respectively, compared with
�2.2bn and �2.5bn respectively at the beginning of the period.

Richard Cuthbert, Chief Executive, commented:

"We continue to make good progress. Our success in tendering for and winning new
work, the strength of our order book and pipeline and our success in acquiring
and integrating new businesses all serve to maintain our confidence in the
Group's future prospects."

The Group will announce its interim results for the six months ended 31 January
2008 on Monday 31 March 2008.


Contacts:

Mouchel

Richard Cuthbert, Chief Executive                 01932 337122

Kevin Young, Group Finance Director               01932 337122


Finsbury

Mike Smith                                        020 7251 3801

Charles Watenphul                                 020 7251 3801





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