Consultant engineer Mouchel has posted a 28% jump in profit for the year to 31 July, despite lower margins caused by increased bidding costs.
Mouchel, which floated on the stock exchange in June, raised its pre-tax profit from 拢4.3m to 拢5.5m. But its overall margin slipped from 6% to 5.5% because of increased bidding costs, especially for contracts in its managed services division.

The group鈥檚 turnover increased 43% from 拢71.5m to 拢102.4m and turnover in its managed services division was up 65% from 拢35.4m to 拢58.3m. Contracts won included a deal to maintain and improve the M25, which brought in 拢10.3m. It is the first time this contract has been awarded to a single firm.

But these wins came with a price and higher bidding costs resulted in the division鈥檚 margins dropping to 4.1% from 5.9% the previous year. Mouchel鈥檚 listing cost 拢2.7m.

Operating margins in the group鈥檚 project services and management consultancy divisions increased during the period.