This follows a pre-tax loss in the previous year of £13.5 million for the consulting and business services group.
The order book value at year-end has also declined from £1,863 million a year before to £1,824 million.
The fall in revenue was attributed to: a lower workload in the Middle East; its withdrawal from rail re-signalling work, and the end of its bridge examination and assessment activities for Network Rail; and a temporary drop in workload in the water business as a result of the transition from Asset Management Plan 4 (AMP) to AMP 5.
The company expects to benefit from an increase in local authority and central government outsourcing as a result of the economic climate. It said that it will target integrated network management and PFI opportunities. Mouchel is currently short-listed to bid in JV with Carillion for a 25-year highway maintenance PFI contract for Sheffield and for a 10-year bundled services contract in Essex.
Chief executive Richard Cuthbert said: “Mouchel has faced some challenges in recent times. We have taken the tough decisions needed to ensure that we are operating appropriately in the current business environment and that we can maximise the benefits of a return to growth. Trading in the current year has started more slowly than expected and the immediate outlook remains uncertain. Whilst we expect to see some improvement in the second half of 2010/11 as cost savings impact, in these circumstances it is right that the Group takes a more cautious approach to performance through 2011 and perhaps beyond. However, the Coalition Government's policies together with our focused business strategy, our reliance on long-term contracts and our leading role in transforming essential services and in sustaining vital infrastructure all give us confidence in the medium- and long-term prospects for the Group.”