INFRASTRUCTURE firm Mouchel said yesterday it is considering an equity fundraising as it looks to tackle debts and restructure the company this year.
Still recovering from a 2011 dominated by contract blunders, management resignations, failed takeover bids, tough trading and a banking lifeline, Mouchel said 2012 would be a year of transition and earmarked annual savings of £18m.
The company said: “All options are being evaluated to address the capital structure of the group, including a significantly dilutive equity raise.”
Mouchel rejected a £330m takeover bid from VT Group in 2010 and further bids from Costain and Interserve last year. Meanwhile the group also said yesterday it had made an underlying pre-tax loss of £6.3m for the six months to the end of January, down from a £4.1m profit in the same period a year ago. Net bank borrowings stood at £104.1m at 31 January, an increase of £7.2m from the same time the previous year. Mouchel said the group would split into two divisions to focus on core markets; infrastructure services, which will run highways work and its Middle East operations; and business services, which will run local government outsourcing work.
Chief executive Grant Rumbles said: “2012 is a year of transition for Mouchel. The first half of this financial year has remained challenging, but we are seeing signs of stabilisation in our core markets.”
City A.M. Reporter