Support services group Mouchel in debt turmoil
Sont des mots qui vont tres bien ensemble
Tres bien ensemble
Sir Michael Lyons, the former BBC Trust chairman, is still in talks with banks about refinancing the company’s £170m of bank facilities and is attempting to reach an agreement before the company announces delayed annual results on Tuesday.
The banks, Royal Bank of Scotland?, Lloyds and Barclays, are “fully supportive” of Mouchel according to the company, despite the fact it is expected to breach covenants just months after a £170m refinancing in January which Mouchel hailed as a “turning point” This is business speak for, 'The banks are about to throw us under the bus.'
In the past few weeks Mouchel has raised cash by selling its pipeline design business for £2.6m to private company Mott MacDonald and its rail business for £3.4m to Sinclair Knight Merz. The company has said its executive team “remain focused on the steps necessary to secure the future of the company." How many more pieces of the 'family silver' do they have left to sell before there is nothing left? The company is haemorrhaging money and is not picking up new council contracts due to the economic climate.
Mouchel has been badly affected by public spending cuts because two–thirds of its clients are local government authorities, which are seeing budgets squeezed as a result of central government’s continued focus on austerity measures. That's er....Us folks. Still they sit and lade and teem our money when they can't even run their own shambles of an operation. How much over the top are they costing us? What will happen if they go tits up? Who then will run the town?
Analysts are forecasting a 14pc drop in revenues for the year to July 31 with pre-exceptional pre-tax profits crashing by two thirds.
Source Daily Telegraph Sat 26 Nov 2011
Still, we'll be alright once the trams start running!!
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