After taking over Parkman, and taking Parkman Chief Executive Richard Cuthbert, Mouchel's share price has dropped, fuelled mainly by the reported costs of the merger. Preliminary results for the year to July will be published in October. for

However the merger costs are 'one-off's' and the new organisation is stronger (and claims it will make further acquistions). Is it ready for take-off in the run-up to the publication of accounts?

Trading Update

Further to the pre-close trading update on 4 August 2011, Mouchel Group plc ('the Group') provides a further trading update today, ahead of the announcement of its Preliminary Results.
In the Interim Management Statement on 15 June 2011, the Group reported that it expected a significant one-off profit on one of its long-term contracts to offset lower profitability than originally expected following commercial conclusions on a number of contracts.

The Group was very recently informed that, as a result of an actuarial error, the one-off gain will be 4.3m lower than previously expected which has an immediate and corresponding impact on the profits the Group will report for the year to 31 July 2011.

In addition, as part of the year-end audit process, Rod Harris, the new Finance Director, has reviewed contract risks and project claims, taking into account the continuing challenging business environment. As a result, the Group has decided to increase provisions in respect of these contract risks and project claims by a similar amount to the reduction in the one-off gain.

The reduction in the one-off gain and the increase in provisions relate to non-recurring and non-cash items.

Richard Cuthbert, Chief Executive, has tendered his resignation with immediate effect, and he will work with the Group for a short period to ensure an orderly handover. Bo Lerenius will become executive Chairman until a new Chief Executive has been appointed. The Board will make a further announcement as appropriate.

Bo Lerenius said: "I would like to express the Board's gratitude to Rich for his many years of service and his continuing belief in and commitment to the business. The Board will focus on maintaining Mouchel's position in its core markets in the interests of all its stakeholders."

Extended auction - hardly surprising.

Down 43%

Ouch.

Back in auction down 46%.

Hard to imagine they were 250p a year and a half ago.

Have a read of my post 42.

Is it a coincidence that the "expected significant one-off profit" arose about the time of the bidding war.

2.50 !!! Don't look at the 5 year chart :-)

Would like to be smiling (gloating) at recent events, but hard to do so when I still have friends working there from the engineering companies the board and it's cronies have destroyed ...... what happened to companies that were happy to make a profit from hard work rather than BS and excuses?

I may buy around the 4p level unless they go bust before hand.

This is a joke price.

Its goodnight from me and .....

goodnight from him.

Board Changes and Update.

Looks like the next Jarvis imo.

Continues to fall sub 10p today.

Uncrossed at the days low - 10.75.

In auction @12.5

Mouchel chairman quits days after being named

(Reuters) - Crisis-hit British infrastructure and maintenance group Mouchel said on Sunday interim chairman David Sugden had resigned only three days after being appointed.

Mouchel, which said last week it expected to breach its loan agreements following a profit warning, did not give a reason for Sugden's departure, but said its lending banks were supportive of the board and its executive team.

Michael Lyons, senior independent director, would chair the board until a new chairman was found, it added.

"His (Sugden's) resignation follows further discussions with the board and other key parties about the best way to secure Mouchel's future," the company said.

"The lending banks have informed the board that they are fully supportive of the board and its executive team which believes that Mouchel has strong and valuable businesses which need to be supported by a stable, long-term financial structure," it added.

Chief executive Richard Cuthbert quit earlier this month after Mouchel said a statistical error and mounting risks to contracts would slash about 60 percent off this year's profits.

Former Serco chief operating officer Greg Rumbles was named as his replacement a week later, and on the same day chairman Bo Lerenius said he was stepping down. (Reporting by Mark Potter; Editing by Sophie Walker

Wouldn't be surprised to hear the board stating that there are no tanks at the gates of Baghdad ;-)

Amazing how many seemingly intelligent engineers were taken in by the BS dreamworld offered by the false smiles in grey suits from the shambolic, debt laden 'managed services' world. Buying out the opposition with debt and dismissing it's brains was never the smartest of business plans!