Mouchel is trying to refinance its debt facilities but the banks, including Royal Bank of Scotland (RBS), Barclays and Lloyds, want an independent review. Mouchel has issued several profit warnings amid concerns of government spending cuts.
Mouchel has confirmed that as part of these refinancing discussions Deloitte has been appointed by the lending banks to perform a limited scope review. The company said that it continues to expect the refinancing to be completed by the time of its Interim Results expected in March 2011 and said that its banks remained supportive.
Mouchel reported a 15% fall in revenues to £632.6m for the year ended 31 July 2010 and a pre-tax loss of £14.7 million. This followed a pre-tax loss in the previous year of £13.5m.
Mouchel share price closed yesterday at 66p, down from a year high of 285.25p.