LONDON (ShareCast) - Road and infrastructure support group Mouchel warned that its performance for the current year will be below previous expectations.
The group said it has increasingly been affected by the previously reported challenges
in rail and in the Middle East.
The Management Consulting business has also been hit by a reduction in demand for consulting services generally, as well as by the costs associated with targeting new opportunities and investing in developing its major local authority partnerships, the benefits from from which have been slower to materialise than previously anticipated.
The position in rail and in the Middle East will also impact next year, but the group expects that this will be broadly offset by cost savings and by organic growth in its ongoing businesses, such that performance in 2009/10 will be broadly unchanged from the current year.
"In spite of this, and notwithstanding general economic pressures, demand for the group's services in our core markets remains generally good," Mouchel said.
"Although general economic conditions remain challenging, our focus on the UK public sector and on the provision of essential services and the management of vital infrastructure means that the demand for our services remains generally buoyant, as evidenced by our continuing strong order book and bidding pipeline. We remain confident about our long term prospects."
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