Mouchel hit by austerity cuts

Outsourcer Mouchel yesterday blamed public spending cuts as it warned full-year results will be at the lower end of its expectations. Mouchel secured £650m of new contracts over the past year, but said a lack of clarity over the government’s austerity measures is weighing on the outlook for this year. But analysts said Mouchel’s order pipeline – which it valued at £2.2bn, unchanged from 2009 – showed contract cancellations had not materialised to the extent initially feared.