RNS Number:2757O
Mouchel plc
04 August 2003

                                                                   4 August 2003



                                  Mouchel plc

           Mouchel strengthened with acquisition of GEL Group Limited
                              for #3.1 million





Mouchel plc, the professional support services group, announces it has acquired
GEL Group Limited ('GEL'), a gas engineering consultancy (formerly Gas Experts
Limited).



An initial consideration of #3,057,304 will be paid in cash.  Further
consideration will become payable based on the post-tax profits of GEL for each
of the three financial years ending July 2004, July 2005 and July 2006.  Any
further consideration will be settled with the issue by Mouchel of redeemable
loan notes.  The total consideration will not exceed #5,700,000.



GEL, which was founded in 1996, is based in Hinckley, Leicestershire. Its team
of 60 consultants provides engineering and project management consultancy
services for clients working in UK gas transmission and distribution. In the
year ended 31 December 2002, GEL generated profits before tax of #494,415 on a
turnover of #3,231,867 with Net Assets of #997,447.  Following the acquisition,
GEL will be renamed Mouchel GEL Limited.



GEL will strengthen Mouchel's current offering in the UK gas sector and position
the company to play a significant role in future managed service opportunities
that arise as a result of the restructuring of the UK's gas distribution
networks.



Jim Harding, chief executive of Mouchel commented: 'I am delighted to announce
the acquisition of GEL Group Limited.  In gas distribution, a key market for
Mouchel, we already provide environmental and strategic management consultancy
to a range of clients.  GEL Group Limited broadens and complements our existing
offering and will significantly enhance our positioning as a provider of
long-term operation services to the UK gas industry.'



Jim Fewtrell, managing director of GEL added: 'We are pleased to be joining
Mouchel at this exciting time in its development as a leading provider of
professional support services.  I look forward to providing our combined
offering of services to clients within the UK gas industry.'




Ends



For further information:



Kevin Young
Group Finane Director, Mouchel plc
Telephone: 01932 337000



Stuart Black
Group Business Development Director, Mouchel plc
Telephone: 01932 337000



Ginny Pulbrook
Director, Citigate Dewe Rogerson
Telephone: 020 7282 2940




Notes to editors:



Mouchel plc is a professional support services group providing high-value
technical, commercial and financial services to public and private sector
clients.



The Group operates in three business streams: Managed Services, Project Services
and Management Consultancy.  The Group's strategy is to develop a fast-growing,
sustainable and high-value Managed Services business, using the established and
profitable Management Consultancy and Project Services businesses to strengthen
and differentiate the proposition.



*         Managed services - operates long-term contracts (typically three to
seven years) ranging from the operational management of highways, roads,
railways and public buildings to providing school improvement and support
services in partnership with local education authorities;



*         Project services - focuses on areas where the Group believes there
is the potential to convert traditional consulting engineering businesses into
Managed Services, especially in the areas of project and supply chain management
and the provision of specialist technologies;



*         Management consultancy - provides access to client organisations at
board level, to contribute to clients' strategic policies and to build in depth
client understanding.  The business stream provides strategic, procurement,
asset and change management consultancy.



Major clients include:



*         Government ministries and agencies (Highways Agency, Ministry of
Defence, Department for Transport, Environment Agency, Department for Education
and Skills)

*         Local authorities (Hertfordshire, Essex, North Yorkshire, Kent, Surrey
and Bedfordshire County Councils)

*         Private sector clients (Network Rail, Transco, Shell, Stena Line
Ports, CSX World Terminals)



Mouchel's head office is in West Byfleet, Surrey.   The Company's shares are
listed on the Main Market of the London Stock Exchange following flotation in
June 2002 (mchl.l).  For further information, please visit Mouchel's website at
www.mouchel.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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