Mouchel unveiled its delayed accounts to the City today and confirmed a new financing deal has now been thrashed out with its banks to keep the company trading.
But the numbers made grim reading with turnover down to £551.4m from £632.6m and the firm posted a £64.8m loss compared to £14.7m last time.
And worse is to come as the firm warned: “The Board’s expectations for the outcome for the current year, compared with 2011, are significantly reduced.”
Mouchel has secured a new bank deal to avoid breaching existing arrangements .
The deal consists of a £129m loan until March 2014 and a £51m revolving credit facility.
The fees for the credit deal will cost the consultant up to £10.25m.
Chief executive Grant Rumbles is planning another major overhaul of the firm in a bid to cut costs.
He said: “I will be looking at the Group’s business and strategy over the coming months and will focus on cash, our costs and our clients.
“I will be reviewing every aspect of our business, including the markets we operate in, our operating model and the management structure.
“I will be looking aggressively at our cost base and particularly at our supporting functions and central overheads. I know that we can do much better.
“Mouchel has a strong underlying business with great staff who help to transform client organisations and to deliver excellent services to the public.
“We have a new management team and we will take firm and decisive action to meet the challenges we face.
“We will work closely with all stakeholders to reduce debt, restore stability and return the business to growth.
“Whilst the outlook is challenging in the short term, I believe that Mouchel has strong underlying businesses that can deliver real and sustainable value to all stakeholders.”
The firm has suffered a horror year after a string of profit warnings, collapsed takeover attempts and management reshuffles.
Mouchel has already cut 1,000 staff after closing 14 offices and is actively looking to sell non-core parts of its business.
Staff numbers fell from 10.425 in 2010 to 9,402 this year.
