Financially troubled outsourcing firm Mouchel said full year losses swelled to £64.8m from £14.7m the year before and it predicts worse is still to come. Shares in the group plunged 25%.
For the year ended 31 July 2011 revenue fell to £551.4m from £632.6m the same time a year earlier. Underlying operating profit slumped 62% to £15.7m from £41.2m.
The provider of infrastructure and business services on road works and other projects said the disappointing year was due to a string of factors including UK government spending cuts, disruption as a result of takeover speculation and an underperformance of parts of the business.
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As a result the board's expectations for the current year, compared with 2011, are significantly reduced.
Mouchel said it retains a strong but reduced order book of £1.4bn at 31 July 2011. It also warned of continuing pressure on turnover, margins and pipeline.
Looking ahead it said, "The outlook for Mouchel is challenging in the short term. Our revenue is likely to be under continuing pressure as a result of uncertainty last year arising from our financial position and takeover speculation, which is adversely affecting our ability to win new business."
Mouchel has agreed amendments to the terms of its main banking facilities, which expire on 31 March 2014 to avoid a breach of the banking facilities.
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