INFRASTRUCTURE expert Mouchel saw its stock plummet yesterday after it warned that its restructuring options were limited and existing shareholders would be all but wiped out under the plans.
The company has issued a string of profit warnings and has been seeking fresh funds to get it back on track.
“All the options being considered will result in there being only limited value for existing shareholders,” said Mouchel.
“Costs related to ongoing operational restructuring and anticipated financial restructuring will impact the current year financial performance.”
Mouchel said it is now aiming to save £21m, up from its previous £18m cost savings target.
The firm hopes to complete a balance sheet restructuring prior to its year end on 31 July.
Mouchel said it had won £165m of work in its current fiscal year, meaning an increase of £45m since its half year at 31 January.
The company said its business in the Middle East was breaking even after costs were slashed.
Chief executive Grant Rumbles said: “Although the environment remains challenging, the actions we are taking will create a platform for long-term growth for Mouchel.”
Mouchel has split its business into two divisions, Mouchel Infrastructure Services (MIS) and Mouchel Business Services (MBS).
Craig Apsey, a former BT executive, has been recruited as managing director of MBS.
Mouchel has three joint venture bids in for London Highways contracts. Mouchel also said that its Australian business was growing with a bid for a contract in Perth.