Flotation costs cut Mouchel's profit to £3.8m

Mouchel, the consultancy group that floated on the Stock Exchange in June, has announced a pre-tax profit of £3.8m on a turnover of £103m.

Profits in the 12 months to 31 July would have been higher if it had not been for £1.7m of exceptional costs resulting, mostly, from the flotation.

Mouchel's managed services division accounted for £58m of group turnover. "That's something given that we built it from scratch over five years," said business development director Stuart Black. "We took the action because we recognised that we had to find a source of long-term secure income."

Turnover in project services was 22% higher at £37m, and margins jumped from 3.5% to 5%. In the fledgling management consultancy business, a £7m turnover generated margins of 20%.

Mouchel has a record forward orderbook of more than £300m and sees "addressable sales opportunities" of more than £2bn.

"We're not saying how many of these we'll chase, but that's the size of the pipeline and it shows that we can afford to be selective," said Black.

Half of the £20m that Mouchel raised at flotation is earmarked for acquisitions. "We're pursuing several options," said Black.