Growth in Mouchel Parkman鈥檚 public sector workload has allowed it to accumulate a 拢33m war chest over the past financial year.

Richard Cuthbert, chief executive of the consulting , said: 鈥淲e鈥檙e looking at ways to grow the business through acquisition as well as organically. But it鈥檚 about timing and finding a willing seller and making sure the culture fits.鈥�

Mouchel Parkman declared its reserves at the same time as it posted a 29% jump in pre-tax profit for the year to 31 July 2006. The firm made 拢26m, compared with 拢21m the previous year.

Profit before tax and amortisation was 拢27m. Revenue rose 21% to 拢374m.

Richard Benton, the chairman of Mouchel Parkman, said the results were the outcome of the company鈥檚 decision to focus on work from the government, local authorities and other public sector bodies.

Highways work accounts for the bulk of Mouchel Parkman鈥檚 order book and its income from road work rose almost 8%, from 拢160m to 拢172m.

Last week the consultant was shortlisted by the Highways Agency for a 拢5bn widening project on the M25. It is part of a consortium that includes Carillion and Costain.

Government services, which includes property and regeneration work, increased turnover by 18% from 拢69m to 拢82m over the 12 months.

Mouchel Parkman bought rail specialist ServiGroup in May last year.

The company said the unit had performed 鈥渟atisfactorily鈥� but the chairman warned that the immediate future was challenging, partly because of uncertainty over Network Rail鈥檚 procurement plans.

Meanwhile, Mouchel Parkman has paid about 拢220,000 to Hertfordshire county council over delays to a project in St Albans. Cuthbert said the company thought it better to settle than to contest the complaint.