Mouchel boss quits as firm issues profit warning

Aaron Morby 11 years ago
Share

Mouchel chief executive Richard Cuthbert has tendered his immediate resignation.

The beleaguered consulting group also issued a profit warning after a thorough review of contract risks and project claims.

According to new finance director Rod Harris, who joined in June from Carillion Business Services, the net impact could be around £8m.

Richard Cuthbert led Mouchel’s fight against take-over bids from both Costain and Interserve last year.

He argued that the consultant was in good enough shape to ride out its financial problems and provide long term shareholder value.

In a short statement this morning Mouchel said: “Richard Cuthbert 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.”

In June, Mouchel 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.

Today it said: “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.”

It also warned that the new finance director had 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.”

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.”

Latest news

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
15 hours ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
17 hours ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
16 hours ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
21 hours ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
21 hours ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
21 hours ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
4 days ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
21 hours ago

Kier wins Sefton net zero £36m school job

Deyes High School in Maghull will consist of 60 classrooms
20 hours ago

Giant TBM cutterhead takes road trip to second drive

Balfour Beatty Vinci to drag remaining TBM back through tunnel for second bore
4 days ago

Fast-track 138-project growth plan – full list

Chancellor banks on road projects to lead growth plan recover
4 days ago

Kwarteng backs construction to lead “new era for Britain”

Planning rules to be ripped-up to speed infrastructure work as 38 new Investment Zones created
4 days ago

Green light for next two Manchester NOMA jobs

Work to start early next year on first of two major office buildings
4 days ago

Bouygues struggles to raise profitability

Loss-making contracts dent pre-tax profit at £835,000 from revenue up at £484m
4 days ago

Architect helps staff with £1,000 cost of living cash

P+HS Architects to make one-off payments this autumn
4 days ago

Sisk wins £69m rerouting of landslip-prone A59

Site clearance to start next month at Kex Gill in Yorkshire
5 days ago

Renewal race starts for £800m NEPO framework

Nearly 20 firms face fight to renew places on north east construction panel
4 days ago

Avonside supply chain left holding £17m in unpaid bills

Former bosses revealed as buyers of branches from administrators
5 days ago

Hexagonal tower plan for Manchester city centre site

Site will feature a 45 storey resi tower and 350,000 sq ft stepped office block
5 days ago

Keltbray staff get £1,000 cost of living payment

Contractor also plans annual pay rise of 5% for majority of employees
5 days ago

Eric Wright rebounds as profit nearly trebles

Second year of revenue fall brings profit reward
5 days ago

RSK buys Welsh contractor Spencer Group

RSK revenue forecast to hit £800m after busy year of acquisitions
5 days ago

National Highways director to lead Balfour civils business

Peter Mumford appointed Managing Director of UK Construction Regional Civils
6 days ago

Plan detailed for business energy price cap

Gas and electricity price cap comes into force from October
6 days ago

Wates wins £53m Grade II London office revamp

Edwardian bank building at 41 Lothbury will become HQ for legal firm Addleshaw Goddard
6 days ago

Woodmace went down owing suppliers £11m

Unsecured creditors left holding worthless invoices despite buyout
6 days ago

Galliford Try staff to get £750 cost of living payment

First major contractor follows big house builders with staff one-off payment for energy bills
7 days ago

Galliford Try checks cost pressures to lift margin to 2.4%

Contractor delivers growth in revenue, profitability and order book
6 days ago

HS2 wins High Court injunction to block protestors

Injunction blocks activists from trespass and intimidation but allows lawful protest
6 days ago

Police hand over probe into Costain site death to HSE

Investigation continues into death of slinger signaller at £150m Gatwick Airport train station site
6 days ago

Contractor services