Redundancy costs ‘negatively affecting Mouchel’

Posted 04/08/2011

The cost of redundancy pay-outs has had a negative effect on services group Mouchel.

Earlier this week, the enterprise released a trading update and revealed its business pipeline stands at £2.2 billion.

Its order book also looks strong, as this recorded positive results of £1.4 billion.

In the months from the end of last year to July 31st, net profit rose from £84.5 million to £87.4 million.

However, Mouchel claimed that although results were better than predicted, there were costs that brought the figures down.

“This is better than expected, though reflects the significant outlay on staff redundancy payments during the year and also some delays in payments, notably in Abu Dhabi,” it stated.

Last month, employees at Somerset County Council started working to rule over a redundancy row in which bosses refused to increase pay-offs to twice the current offering.

Businesses looking for advice on redundancy and employment law can find help at Ashtons Legal.