Pre-Close Trading Update
August 06 2009 - 2:00AM
UK Regulatory
TIDMMCHL
RNS Number : 9662W
Mouchel Group plc
06 August 2009
6 August 2009
MOUCHEL GROUP PLC
Pre-Close Trading Update
Mouchel Group plc ("Mouchel" or "the Group"), the consulting and business
services group, today reports on trading for the year ended 31 July 2009, prior
to entering its close period.
The Group reconfirms the guidance given in its Interim Management Statement
(IMS) on 18 June 2009 and anticipates reporting results for the year ended 31
July 2009 in line with the Board's expectations.
The update on the four key issues set out in the IMS is as follows:
+----------+----------+---------------+
| 1 | | Overall, |
| | | our |
| | | prospects |
| | | continue |
| | | to be |
| | | underpinned |
| | | by a strong |
| | | order book |
| | | and healthy |
| | | bidding |
| | | pipeline, |
| | | which stood |
| | | at GBP1.9 |
| | | billion and |
| | | GBP2.2 |
| | | billion |
| | | respectively |
| | | at 31 July |
| | | 2009, |
| | | compared |
| | | with GBP2.0 |
| | | billion and |
| | | GBP1.9 |
| | | billion |
| | | respectively |
| | | at the half |
| | | year. In |
| | | terms of |
| | | bidding for |
| | | new work, |
| | | the Group's |
| | | win rate |
| | | during the |
| | | last six |
| | | months has |
| | | been |
| | | restored to |
| | | within our |
| | | target range |
| | | (of between |
| | | 1 in 3 and 2 |
| | | in 5 of |
| | | tenders by |
| | | value). |
+----------+----------+---------------+
| | | |
+----------+----------+---------------+
| 2 | | In |
| | | Management |
| | | Consulting, |
| | | we have |
| | | completed |
| | | the |
| | | right-sizing |
| | | of the |
| | | business and |
| | | the |
| | | appointment |
| | | of a new |
| | | management |
| | | team. We now |
| | | have greater |
| | | flexibility |
| | | to respond |
| | | to any |
| | | future |
| | | changes in |
| | | demand for |
| | | our services |
| | | in this |
| | | area. |
+----------+----------+---------------+
| | | |
+----------+----------+---------------+
| 3 | | We |
| | | continue |
| | | to make |
| | | progress |
| | | in |
| | | collecting |
| | | outstanding |
| | | receivables |
| | | in Dubai |
| | | and, |
| | | although |
| | | this |
| | | process |
| | | remains |
| | | slow, we |
| | | are still |
| | | aiming to |
| | | have the |
| | | overall |
| | | position |
| | | resolved by |
| | | the time we |
| | | announce |
| | | the Group's |
| | | preliminary |
| | | results for |
| | | the year |
| | | ended 31 |
| | | July 2009 |
| | | in October. |
+----------+----------+---------------+
| | | |
+----------+----------+---------------+
| 4 | | We have |
| | | now |
| | | substantially |
| | | exited the |
| | | rail sector |
| | | and are in |
| | | the process |
| | | of completing |
| | | our major |
| | | commitments |
| | | with Network |
| | | Rail. |
+----------+----------+---------------+
We have now largely completed the restructuring of the Group's businesses in the
Middle East, Rail and Management Consulting and the impact of this will be
reflected in the Group's accounts for the year ended 31 July 2009.
Notwithstanding the current economic situation, market conditions remain
generally buoyant with continuing evidence of strong demand in all of our core
markets - Government Services, Regulated Industries and Highways.
In Government Services, we continue to target additional services with existing
clients, particularly our major partnership contracts in Lincolnshire and
Oldham, where we anticipate growth in 2009/10. We are pursuing the potential
extension to our current commission in Middlesbrough and the new bundled
services opportunity in North East Lincolnshire. Additionally, we have either
been short-listed, or expect to be short-listed, for a number of other bundled
services opportunities elsewhere as more local authorities seek to outsource
services.
In Regulated Industries, we have now secured the five-year extension to our
existing contract with United Utilities, which we hold in joint venture with
Kier, Murphy and Interserve, and we expect to do likewise with Yorkshire Water
in joint venture with Costain. We continue to bid for other opportunities under
AMP5 with the major water companies in the UK. We are also pursuing specific
opportunities with Severn Trent in the use of new technology for leakage
detection and for revenue metering with Thames Water.
In Highways, our parking services business has now secured the Wandsworth
contract to add to our existing commissions in Hillingdon and Newham. We have a
strong pipeline of parking and traffic management opportunities elsewhere in
London, as well as with the Highways Agency in support of its Managed Motorways
programme. We continue to bid the maintenance management commissions with the
Highways Agency in Area 13 (Cumbria) and Area 1 (South West) and have now been
short-listed in consortium for the highways maintenance PFI contract in
Sheffield. We have recently been successful in our tenders for the Northern
Ireland Roads Services Major Projects Framework, the Transport Scotland ITS
Framework and a design commission for the Highways Agency on the A11. We are
also awaiting the outcome of a number of other tenders with the Highways Agency
and with several local authorities, including a five-year professional services
contract in Lincolnshire.
At 31 July 2009, the Group's net debt was broadly in line with our expectations
of around GBP100 million. With banking facilities of GBP190 million, the larger
part of which remains in place until the second half of 2012, this continues to
give the Group certainty of funding for the next three years.
Notwithstanding the challenging economic outlook generally, we believe that we
will continue to benefit from sustained public expenditure in our markets and
from our strong focus on the provision of essential services and maintenance of
vital infrastructure. We are also increasingly seeing opportunities to help
public sector organisations transform service delivery, save costs and provide
public services more efficiently. As a result, we remain confident about our
longer term prospects, as well as in delivering results in line with our
expectations for the year ended 31 July 2009.
The Group will announce its preliminary results for the year ended 31 July 2009
on Tuesday 6 October 2009.
For further information, please contact:
+-----------+---------------+
| Mouchel | |
+-----------+---------------+
| | |
+-----------+---------------+
| Richard | 01483 731731 |
| Cuthbert, | |
| Chief | |
| Executive | |
+-----------+---------------+
| Kevin | 01483 731731 |
| Young, | |
| Group | |
| Finance | |
| Director | |
+-----------+---------------+
| | |
+-----------+---------------+
| Finsbury | |
+-----------+---------------+
| | |
+-----------+---------------+
| Mike | 020 7251 3801 |
| Smith | |
+-----------+---------------+
| Charles | 020 7251 3801 |
| Watenphul | |
+-----------+---------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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