Consulting and services group says public sector focus has left it 'relatively untouched' by economic turmoil
Mouchel Group said it had been “relatively untouched” by the economic slump today as it posted a 45% pre-tax profit drop in its full-year results.
The consulting and business services firm said that pre-tax profit had fallen to £26.3m for the year to 31 July 2008, down from £48.1m in 2007.
However, profit before tax and exceptional items rose 20% to £38.8m, compared with £32.4m last year. Revenue rose by 46% to £657m, up from £449m last year.
The firm said it had an order book of £2.1bn and a bidding pipeline of £2.2bn.
Operating margins fell to 6.4%, compared with 7.4% in 2007, which Mouchel said was a result of the acquisition of HBS, the business processing outsourcing firm it bought for £46m in August last year.
Mouchel said it had been “less affected than other businesses by the recent turmoil” because of its focus on the UK public sector and regulated industries. It said that the outlook for the year ahead was good.
Richard Cuthbert, group chief executive, said: “Importantly, given the defensive nature of the group's activities, we have been relatively untouched by the recent turmoil in financial markets and the upheaval elsewhere in the economy.
“The outlook for our growing and increasingly diverse business remains promising and we are confident that the group will continue to prosper in line with our long-term plans.”