Consultant Mouchel has revealed it has taken a £600M hit to its forward order book after backing out of a £130M partnership deal with Rochdale Council.
The firm said today it was in discussions with Rochdale to mutually agree an “amicable exit” from its 15 year partnership. The joint venture, called the Impact Partnership, was aimed at providing highways, property, IT and payroll services to support the regeneration of the Rochdale borough over a 15 year period from April 2006.
The firm said its order book will decrease by circa £130M if it successfully pulls out. But it said the move would have “negligible impact” on its operating profit and cash position.
The firm said its order book hit was compounded by its “failure to be selected” for West Sussex Council’s £400M contract to provide outsourced services.
But it said future trading had been supported by a number of significant new contract wins totalling £79M since July 2011 as well as expansions and extensions to existing contracts.