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Business services firm, Mouchel, has reported a 19% growth in revenue in the six months to 31 January, despite the tough economic conditions. Chief executive, Richard Cuthbert, told The MJ: ‘Local authorities are among the last sector of the economy to go into the credit crunch.' However, he added that 2010/11 might be worse as councils would have far less cash to spend. He claimed the 19% growth would get more difficult to sustain as the economy continued its decline, but organic growth over the past six months remained in double figures, at 11%. In the six-month period to 31 January, Mouchel reported a 36% rise in underlying operating profit to £24.7m. In the period, the company had a £2bn order book, with a £1.9bn bidding pipeline. The firm has recently announced a £30m deal to extend its contracting in Lincolnshire for five years. The contract was inherited when Mouchel acquired outsourcing firm, HBS. The company's other recent acquisition was management consultancy Hedra. Although there has been a cut in demand for consultancy services, Mouchel's management consulting arm has won several commissions with the Government and agencies. These include deals with the National Healthy Schools programme, the National Police Improvement Agency and the Skills Funding Agency. Mr Cuthbert said the company's business model was ‘proving to be particularly resilient in the current environment and we have again improved margins'. He added: ‘We have delivered good results and we are still on track for the full year – but we are preparing to get a bit leaner and fitter for times ahead.' The full financial report can be found here.

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BUSINESS

Mouchel revenues show 19% growth

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