UPDATE 1-Mouchel's outlook improving as govt cuts kick in

Wed Sep 1, 2010 2:37am EDT

* Medium and long-term outlook increasingly positive

* Wins new work in Australia and Abu Dhabi

(Adds details)

LONDON, Sept 1 (Reuters) - British outsourcer Mouchel (MCHL.L) said the outlook for its businesses was improving as the UK government starts to farm out work to cut costs.

"The medium and longer term outlook is becoming increasingly positive as the new government's policies are implemented by organisations across central and local government," the company said in a statement on Wednesday.

Many support services firms could suffer as the coalition government cuts spending to fight a ballooning national deficit but Mouchel is confident it will gain as local authorities seek to create efficiencies.

Mouchel, which maintains Britain's highways, said it had won new work in Australia and Abu Dhabi and that it expects to save 25 million pounds ($38.51 million) of costs in the full-year.

The company also said it had appointed David Tilston as finance director, replacing Kevin Young.

Tilston, who previously held senior financial management posts at SABMiller (SAB.L) and Balfour Beatty (BALF.L), will join Mouchel on Sept. 13.

(Reporting by Rhys Jones; Editing by James Davey)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.