Rail and Middle East drag Mouchel numbers 'below expectations'

Mouchel has warned that its performance for the year will be below its previous expectations, as it struggles in the rail sector and the Middle East.

In its interim management statement for the period to 31 May 2009, released this morning, Mouchel said that the business had also been affected by a reduction in demand for its consulting services generally.

"Although general economic conditions remain challenging, and the group's performance for the current year and 2009/10 is now expected to be below our previous expectations, our focus on the UK public sector and on the provision of essential services and the management of vital infrastructure means that the demand for our services remains generally buoyant.

"This increasing pressure that will be placed on government spending from 2010 offers both a threat and an opportunity for the group, but we expect ourenhanced capability in business change, transformation and efficiency, together with our portfolio of our long-term relationships, to leave us well placed to weather the current recession. We remain confident about our long term prospects."