Mouchel secures £550m in new highway contracts

MOUCHEL, the British support services group, has sealed new highway contracts worth £550m and expects to return to growth in 2010/11.

The Group also announced a £2bn order book for the six months ending 31 January 2010, up from £1.9bn in July last year.

It said bidding opportunities had increased as local authorities look to outsource work to the private sector.

Richard Cuthbert, chief executive added: “The business has regained momentum and once again we can look forward with confidence.”

But the ownership of the group hangs in the balance following a takeover bid from industrial giant VT Group.

Cuthbert recently described VT Group’s offer of 260p per share as hostile and opportunistic.

Analysts expect the company to post pre-tax profit of £38.7m for the year to 31 July, down on £40.1m the previous year.