Consultant admits it is in talks to exit Rochdale council regen partnership

Mouchel is set to lose out on 拢130m of work, after Rochdale council entered discussions with the consultant to terminate its regeneration partnership.

The consultant admitted in a trading statement this morning that discussions had begun with the council to mutually agree an 鈥渁micable exit鈥� from the deal.

Mouchel鈥檚 pipeline has also decreased since July from 拢2.2bn to 拢1.6bn at the end of November.

The consultant said its failure to win a 拢400m contract to manage outsourced services for West Sussex council accounted for most of the pipeline fall.

But Mouchel said future trading had been supported by significant contract wins totalling 拢79m, for the London boroughs of Croydon and Hackney, the Highways Agency and the department for regional development in Northern Ireland.

The company said:  鈥淥ur expectations for the year to July 2012 remain unchanged.

鈥淭he economic environment continues to put pressure on margins across our markets, as clients face cutbacks in spending. 

鈥淲e have however, continued to win contracts and the actions to right-size the business are well under way, including plans to restructure the balance sheet of the group within the first half of 2012 and return the group to growth.鈥�

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