Highways contractor says it is facing 鈥渧ery challenging鈥� market conditions
Mouchel鈥檚 order book has been hit by Costain and Interserve鈥檚 efforts to takeover the firm, it admitted today.
The highways maintenance contractor saw its order book fall to 拢1.5bn from 拢1.9bn last year, Mouchel confirmed in a trading statement to the City today.
Real-time Share PriceThe firm said: 鈥淭he overall level of bidding activity has been lower than in previous periods and our ability to secure new orders was adversely impacted by the Offer Period which ran from December 2010 to April 2011.鈥�
The firm reported falls in local authority work but said highways maintenance had held up.
Mouchel is down to a shortlist of two in a joint venture with Carillion for the Sheffield PFI highways maintenance contract which could be worth 拢2bn over 25 years.
Overseas, the firm said it has signed contracts worth over 拢25m with Main Roads Western Australia and has won a series of highway design and infrastructure planning contracts in Saudi Arabia.
Despite 鈥渧ery challenging鈥� trading conditions the firm said the 鈥渘umber of opportunities in our core markets is beginning to rise.鈥�
Mouchel added: 鈥淭he short-term outlook for the Group continues to be very challenging and is heavily influenced by the steps the Coalition government is taking to rapidly bring down the deficit in public spending.
鈥淟ocal government, which makes up more than two-thirds of our client base, has been particularly hard hit by the unexpected speed and depth of these cuts.
鈥淥ur response to these conditions has been to focus on those items under our control, namely our client relationships, our cash position and our cost base.
鈥淲e have successfully refinanced and right sized the Grou