Troubled consultant sells subsidiary to Mott MacDonald for 拢2.55m
Mouchel has confirmed the sale of another of its subsidiaries 鈥� this time its pipeline design business to engineer Mott MacDonald.
The troubled consultant confirmed the sale for 拢2.55m cash in a trading update to the City this morning.
Mouchel sold its 拢13.6m-turnover rail division last week to Australian engineer Sinclair Knight Merz for 拢3.4m cash.
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Grant Rumbles, chief executive of Mouchel, said: 鈥淔ollowing the recent agreement to sell Mouchel Rail, the sale of Mouchel鈥檚 pipeline design business is another key step in our strategy to focus on Mouchel鈥檚 leading positions in core markets. We wish the business and its employees every success for the future.鈥�
The pipeline design business reported a post-exceptional profit before tax of 拢90,000 on turnover of 拢4.7m during the year to 31 July 2010.
The business is led and managed by Colin Brewster, who will remain with it under Mott MacDonald鈥檚 ownership.
Mouchel鈥檚 share price has fallen in recent weeks as the consultant admitted to an 拢8m accounting error, delayed its accounts and lost a string of senior executives, including chair David Sugden this week. But the share price edged upwards on news of the pipeline business sale in early trading this morning.
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