mouchel annual report and accounts 2013
1 25 
years of 
forward  
thinking
mouchel annual report and accounts 2013 mouchel is an international 
infrastructure and 
business services group   
we help to transform  
and sustain essential  
public services we work  
in partnership with public  
and private sector clients  
to improve the lives  
of millions of people
you can help us to minimise our environmental  
impact by opting to view our report online at  
wwwmouchelcom key achievements in 2013
p30 business services p18 infrastructure services
revenue
underlying operating profit

 
£5553m £281m
underlying ebitda

underlying profit before tax

£370m £208m
underlying cash generated from 
operating activities

underlying cash conversion  
from ebitda

£393m 106
pipeline orderbook
£24bn £17bn
operating profit profit before tax
£239m £166m
net cash generated from  
operating activities 
£189m
  underlying metrics are those used by 
management to measure the performance 
of the business before taking account of non
underlying items details of which are set out 
in note 3 of the financial statements
highlights
overview
1 highlights
2 understanding our business
4 chairman’s statement
5 forward thinking led by  
our values
 – innovation
 – integrity
 – responsibility
 – excellence
business review
12 chief executive’s  
strategic review
18 infrastructure services
30 mouchel business services
40 financial review
44
46
risk review
corporate 
responsibility review
governance
54 board of directors
56 strategic report
57 directors’ report
60 statement on corporate 
governance
financial statements
66 statement of directors’ 
responsibilities
67 consolidated income 
statement
68 consolidated statement  
of comprehensive income
69 consolidated balance sheet
70 consolidated cash flow 
statement
71 consolidated statement  
of changes in equity
72 independent auditors’ report 
to the members of mrbl 
limited
73 notes to the consolidated 
financial statements
113 company balance sheet
114 independent auditors’ report 
to the members of mrbl 
limited
115 notes to the company 
financial statements
118 company information
• acquired remaining 50 of our 
highways and maintenance joint 
venture enterprisemouchel in february 
2013 it was renamed em highway 
services ltd em in august 2013
• won largest ever contract 
with highways agency – area 
3 valued at circa £700m
• won london highways alliance 
lohac south with transport for 
london valued at circa £400m
• won scottish trunk roads south west 
scotland valued at circa £125m
• won threeyear contract extension with 
oldham council valued at circa £50m
• won single supplier status on three
year police pensions administration 
service framework for cheshire 
and merseyside police worth 
circa £25m option to extend
• broke into higher education sector 
winning a place on all four lots of 
university of liverpool property 
framework valued at circa £200m
mouchel annual report and accounts 2013 1
financial statements governance business review overview contribution to group revenue
infrastructure services £3879m
mouchel business services £1674m
group
infrastructure
services
mouchel
business services
mis em australasia
group structure divisional performance
mouchel is structured around two operating businesses 
infrastructure services and mouchel business services 
our business model is premised on the devolution 
of responsibility and accountability from the centre 
to the lowest appropriate level supported by strong 
governance the objective is to enable decisions to be 
made quickly and as close to the ground as possible 
this allows our people to be responsive to our clients
the company commenced trading on 25 august 2012 
following the acquisition of the former subsidiaries of 
mouchel group plc following its financial restructuring
understanding our business
we provide advisory  
design project 
delivery and managed 
services associated with 
infrastructure and business 
services working in the 
highways and transportation 
local government  property  
emergency services health 
education and utilities 
markets across the world 
mouchel annual report and accounts 2013 2 
overview business process outsourcing 
we provide an integrated portfolio of efficient and well
managed back middle and front office functions such  
as information and communications technology human 
resources customer services finance and pensions 
administration typically delivered through longterm 
collaborative partnerships with our clients 
consulting
we focus on professional services in three key areas including 
business transformation performance improvement and 
efficiency and cost reduction
information and communications technology
we provide a comprehensive it implementation support  
and maintenance solution for internet and traditional 
application environments for over 50000 users 
property
we provide strategic and operational asset management 
master planning design estates and facilities management  
for a substantial property portfolio up and down the country
education
we offer a wide range of highquality education and support 
services including tailored education advice project delivery 
and managed services in human resources payroll property 
finance and information and communications technology 
underlying operating profit before corporate costs
£53m
revenue 
£1674m
mouchel infrastructure services 
mouchel infrastructure services is an international 
business providing professional infrastructure engineering 
environmental and asset management consultancy services 
primarily in the highways design and management intelligent 
transport transportation maritime water and energy sectors 
we operate across the entire lifecycle of an asset or project 
from initial feasibility scoping through to decommission  
and disposal
em 
em is a dedicated highways maintenance and management 
provider specialising in the delivery of road maintenance 
contracts in england and also provides public realm 
infrastructure works and professional services 
downermouchel
dm our 5050 joint venture with downer edi in australia 
delivers integrated road asset management and maintenance 
services under the main roads western australia integrated 
services arrangements and in 2014 will commence two  
new maintenance contracts in western sydney and south 
east queensland 
mouchel business services
infrastructure services
underlying operating profit before corporate costs
£283m
revenue
£3879m
infrastructure services embraces a range of our core 
offerings covering highways water and environment 
businesses operating predominantly across the 
uk but also in the middle east and in australia 
in highways and water we operate across the entire 
lifecycle of essential infrastructure assets from demand 
analysis and business case preparation to asset 
design management maintenance and operations
mbs is one of the uk’s largest providers of outsourced 
professional and support services to local councils  
and other public bodies such as the police  
fire and rescue services schools and the nhs 
overview
mouchel annual report and accounts 2013 3 chairman’s statement
underlying operating profit was £28 1m  
for the year to 30 september 2013  
with key performance metrics comparing 
favourably with those of peer group 
competitors in the equivalent period before 
the restructuring the business made  
an operating loss on a pro forma basis
the group’s net debt at the yearend was 
£455m representing a ratio of net debt  
at 12 times ebitda this was after funding 
the strategic acquisition of the remaining 
50 of enterprisemouchel using new bank 
debt and cash this additional facility was 
repaid in full before the yearend ahead 
of the planned maturity date net debt is 
expected to show a further reduction in the 
current year as a result of continuing strong 
cash generation
this performance could not have 
been achieved without the dedication 
commitment and experience of mouchel’s 
more than 6500 people led by grant 
rumbles and his leadership team on behalf 
of the board i would like to thank each of 
them for the contributions they have made 
and are making to the success of the group
as mouchel celebrates 125 years in 
business i am delighted to report that 
the group has achieved an excellent 
financial performance ahead of board 
expectations and represents a year  
of significant progress for the business 
performance in respect of revenue 
profit cash generation and order  
book demonstrates that mouchel  
is delivering on its core strategic 
objectives and following the  
completion of the restructuring  
in the first half of the year is on  
a strong growth trajectory
board of directors 
paul rayner joined the board as group 
finance director in january 2013 replacing 
rod harris who had performed the role 
during the refinancing i would like to thank 
rod for his support throughout that time  
and wish him well for the future
at the same time ian duncan joined as 
a nonexecutive director and chairman 
of the audit committee and in may mike 
jeffries joined as a nonexecutive director 
to chair the remuneration committee 
these appointments as independent 
directors enhance the board and reflect a 
commitment to strong effective corporate 
governance clients and other stakeholders 
expect this and it is embedded firmly in the 
mouchel culture
outlook
mouchel has been transformed in the last 
two years the group’s simplified operating 
structure is now directly aligned to meet 
clients’ needs as they seek costeffective 
and innovative solutions to deliver their 
strategies in the face of continued pressure 
on budgets mouchel’s recognised ability  
to work in partnership enables them  
to achieve their objectives
the results of the operational and financial 
restructuring have established mouchel as 
a profitable soundly financed and dynamic 
business with ambitious growth plans 
the board looks ahead to the future with 
renewed confidence and by continuing  
to meet our clients’ needs we are  
delivering on our objective of creating  
value for stakeholders
david jb shearer
chairman
1 1 december 2013
the group has achieved 
an excellent financial 
performance ahead of 
board expectations and 
representing a year of 
significant progress for 
the business
mouchel annual report and accounts 2013 4 
overview forward 
thinking 
led by  
our values
innovation
we strive to continuously 
innovate in how we perform  
and work with our clients
our vision 
to be recognised for excellence
responsibility
we own our individual actions 
and are accountable for them 
we do what we say we will 
we devolve responsibility to 
our people backed up with 
appropriate governance
integrity 
we will always behave in a way that is of the highest ethical standard  
because it is the right thing to do whoever we are dealing with  
we will act and be seen to act in an open and transparent manner 
excellence
for us to achieve our vision 
we will strive to be excellent in 
everything we do for our clients
mouchel annual report and accounts 2013 5
overview wessex water
forward 
thinking with 
innovation
striving to continuousl y 
innovate
‘every five years water companies must submit  
a business plan detailing their investment needed  
to maintain and improve their service for the next five 
years most difficult is estimating the investment required 
for capital maintenance to renew existing assets
 there is a new requirement for the current review  
where companies need to assess the lowest total cost  
to own and operate the assets including the tangible  
and intangible costs to clients and other stakeholders
 for the last regulatory price review pr09 we developed 
a tool to predict future risk of asset failures and identify 
investment strategies to manage that risk for the next 
40 years we have now used it to predict the future 
risks to all of wessex water’s treatment and pumping 
assets ahead of the new regulatory round and identified 
appropriate investment strategies’
 martin osborne technical director 
wastewater strategy  mouchel 
mouchel annual report and accounts 2013 6 
overview 12
providing water asset 
management support to 
all 12 of the major water 
and sewerage companies in 
england and wales
mouchel annual report and accounts 2013 7
overview ‘the health and safety of our employees and our suppliers 
is a top priority for mouchel as project manager for 
the construction of the um al aish liquefied petroleum 
gas filling plant in kuwait we have adopted a proactive 
approach to consistently achieve high safety standards
 as a result by july 2013 the site had reached five million 
safe man hours without injury or lost time more recently  
in november 2013 we were awarded mouchel’s 
excellence award for health and safety for this project’ 
 henk steyn project manager  
mouchel middle east
5 million
the site reached five million safe 
man hours…
um al aish
mouchel annual report and accounts 2013 8 
overview forward  
thinking with 
responsibility
we own our individual  
actions and are accountable 
for them
mouchel annual report and accounts 2013 9
overview forward  
thinking with 
excellence
striving to be excellent  
in everything we do 
mouchel annual report and accounts 2013 10 
overview ‘mouchel has been involved with active traffic 
management managed motorwayssmart 
motorways since 2000 in proving the technology 
developing the ‘operational regimes’ and 
supporting the business case for safely managing 
congestion we have prepared all the current 
smart motorway design standards for the 
highways agency
 the m42 active traffic management scheme  
has improved safety improved reliability  
of journey times and secured environmental  
benefits on one of britain’s busiest roads 
 it has put the uk at the forefront of the evolution 
of smart motorways globally and it is the current 
standard for modernising england’s strategic 
road network
 i was delighted that our team recently won 
mouchel’s excellence award for technical 
excellence’
lucy wickham technical director  
mouchel
zero 
fatalities 
since active traffic management atm 
was introduced there have been zero 
fatalities on the j3 – j7 section of the 
m42 during hard shoulder running
managed motorways
overview
11 mouchel annual report and accounts 2013  chief executive strategic review
this is an exciting 
time for mouchel 
we have created a 
strong platform 
to provide further 
value to our clients 
and grow our 
business in areas 
where we already 
hold leading 
positions 
mouchel annual report and accounts 2013 12 
business review this has been a very successful year  
for mouchel after celebrating 125 years 
of operations we ended 2013 with profits 
ahead of the board’s expectations an 
underlying ebitda of £370m and strong 
underlying cash generation of £393m 
our order book at the yearend was 
£17bn and since then we have secured 
an additional £300m of new contracts 
in the uk australia and the middle 
east our pipeline which consists of 
opportunities where the bidding process 
has commenced at yearend was a healthy 
£24bn together with a further £5bn of real 
opportunities at lead or prospect stage 
during the year we also won our largest ever 
contract – one of the first new roads network 
asset support contracts with the highways 
agency worth up to £700m 
we are proud of our performance 
particularly as it was achieved against the 
backdrop of a difficult economic climate and 
the uk government’s austerity programme
it is however only the beginning
grant rumbles
chief executive
business review
mouchel annual report and accounts 2013 13 chief executive strategic review continued
the marketplace
mouchel is an international infrastructure  
and business services group that helps  
to transform essential public services  
we provide advisory design project 
delivery and managed services associated 
with infrastructure and business services 
working in the highways and transportation 
local government property emergency 
services health education and utilities 
markets across the world 
while the vast majority of our operations 
serve the public sector we do also provide 
services to the private sector particularly  
in our water and property divisions 
in many of our markets our clients’ budgets 
are under continuing pressure they are 
therefore looking for greater efficiency  
more innovative solutions and better value 
for money overall from private sector 
suppliers such as mouchel to meet 
their needs hence there are many new 
opportunities in our markets and as our 
record order book and pipeline show  
this number is growing 
there are also deeplying demographic 
reasons to expect continuing growth  
in our markets according to the united 
nations the global population is expected  
to increase from 7 2bn today to 96bn by 
2050 as a result the demand for two of  
our main areas of infrastructure expertise 
design and asset management of roads  
and water will certainly increase 
there are many new 
opportunities in our 
markets and as our 
record order book  
and pipeline show this 
number is growing
£300m
since yearend we have secured an  
additional £300m of contracts in the  
uk australia and the middle east
£700m
during the years we won our largest ever  
contract – worth up to £700m – within the  
highways agency
circa
mouchel annual report and accounts 2013 14 
business review mouchel ’s growth 
opportunities are by 
no means limited by the 
markets in which we 
currentl y operate
mouchel’s growth opportunities however 
are by no means limited by the markets in 
which we currently operate at a corporate 
level our skills are transferable to other 
sectors and geographies
our main challenge is ensuring that we 
recruit retain and develop the right people 
with the right skills over the past year we 
have placed a particular focus on how we 
develop our employees and in the coming 
year we will be seeking to recruit some 600 
additional engineers into our infrastructure 
services business 
infrastructure services
roads
as one of the uk’s leading providers  
of road design maintenance management 
and operations we are pleased by the 
uk government’s recent pledge to inject 
significant investment into the country’s  
road infrastructure 
the department for transport’s action for 
roads paper published in july outlined the 
future of road investment in england and 
wales in it the secretary of state described 
the report’s proposals as ‘the most radical 
change to the management of our highways 
in nearly half a century and the biggest 
investment in improvements since the 70s’ 
the investment which will be guaranteed by 
legislation includes more than £15bn in the 
strategic road network by 2021 and more 
than £12bn on maintenance
the scottish government is also investing 
heavily in new roads this year our transerv 
joint venture won a £125m fiveyear contract 
for the management and maintenance of 
the south west region of the scottish trunk 
roads network for transport scotland 
transerv is also currently bidding for the 
roads asset maintenance contracts for 
both north east and south east scotland 
which at the time of publication is expected 
to be announced in december 2013 in a 
separate joint venture mouchel has also pre
qualified this year to design the new dual a9 
carriageway from perth to inverness which 
we expect to be announced in early 2014 
in february we acquired the remaining 
50 percent of our highways management 
and maintenance joint venture 
enterprisemouchel which we have 
rebranded em highway services ltd em 
the business has an annual turnover in 
excess of £200m and the acquisition gives 
us increased stability value and opportunity 
in this growing market this is a strategically 
significant step establishing mouchel as one 
of the very few companies offering a fully 
integrated endtoend highways service 
in australia through downermouchel 
dm we operate a successful joint venture 
partnership with downer edi dm provides 
asset management solutions similar to 
those services we provide through em in the 
uk we have successfully operated three 
integrated service arrangements in western 
australia since 201 1 and we recently 
broke into the eastern australian market 
winning two new roads asset maintenance 
contracts one in queensland and one 
in sydney jointly valued at aud835m 
the sydney contract is a first generation 
outsourcing contract where we expect  
to add significant value for our client 
we are also pursuing further growth 
opportunities in both australia and  
new zealand
in the middle east where we have  
been operating for over 30 years  
we see significant growth opportunities  
in the united arab emirates the kingdom  
of saudi arabia and in kuwait for the design 
of new infrastructure and for longterm  
asset management 
historically the mouchel middle east 
business operated as a separate unit  
over the course of the year it has been fully 
integrated within the infrastructure services 
business to maximise the capabilities and 
strengths of both our overseas and uk 
expertise we are now seeing the benefits  
of this we are currently preferred bidder  
for some £30m of new project work
health and safety
the health and safety of our employees 
and supply chain is a top priority during 
the year we have continued to embed 
a positive safety culture throughout our 
organisation focusing on eliminating the 
potential for serious injury and ill health 
while minimising the hazards our people 
face in the delivery of our services 
this is reflected in our performance  
for the year with our accident frequency 
rate falling by over 20 and our overall 
approach to occupational safety gaining 
recognition – for a seventh consecutive 
year – with a gold award from the royal 
society for the prevention of accidents 
rospa
in 2014 we will introduce a new  
safety excellence strategy ensuring  
that all of our employees have the 
right tools knowledge and leadership 
support to enable us to achieve a truly 
‘zero harm’ culture
business review
mouchel annual report and accounts 2013 15 group
our vision
to be recognised for excellence
governance risk
cr
p46 p44 p54
our values
integrity
innovation responsibility excellence p6 p8 p10
underpinned by
infrastructure services mouchel business services p18 p30
600
engineers
in the coming year we will be 
seeking to recruit some 600 
additional engineers into our 
infrastructure services business
chief executive strategic review continued
business model
water
in the uk we serve all 12 of the major  
water companies in england and wales  
the current amp 5 procurement cycle 
finishes in early 2015 and we are actively 
preparing and bidding for the vast range 
of framework contracts we have a strong 
track record of retention for example we 
have already secured an extension of our 
modelling framework with severn trent 
water and we have also won a new  
contract with affinity water
we are further leveraging our water 
consulting knowledge and skills to take 
advantage of the many opportunities that  
are available in the middle east
mouchel business services
the cumulative impact of the government’s 
comprehensive spending review has 
been detrimental to local authorities in the 
uk clients require innovative solutions that 
enable them to maintain service provision 
but with ever greater levels of value for 
money mouchel business services is  
well placed to assist our clients to achieve 
both outcomes 
our business services division is one of the 
largest providers of outsourced professional 
and support services to local and central 
government bodies in the uk we process 
payslips for more than 1000000 people 
each year provide pension services for 10 
police forces and deliver large multiservice 
contracts for several local authorities across 
england we also provide a range  
of property services
while there continues to be demand 
for private sector support this market is 
challenging and significant growth in this 
space is unlikely in the foreseeable future 
that said mouchel remains profitable we 
have continued to innovate and win work 
notably our threeyear extension to our joint 
venture with oldham council in june 2013 
our strategy and business model 
our vision is to be recognised for excellence 
and this is underpinned by a set of values 
– innovation responsibility excellence and 
integrity – that drives our actions on a daily 
basis our successful financial performance 
over the past year has been achieved by 
ensuring that we adhere to and apply those 
values that we have the right people in the 
right roles and that we have a marketfacing 
organisational structure supported by 
strong governance 
at the heart of the mouchel business 
model is the devolution of responsibility and 
accountability from the centre to the lowest 
appropriate level the objective is to enable 
mouchel annual report and accounts 2013 16 
business review strategy
strategic objectives
clients
continue to build great relationships by 
delivering collaborative thought leadership 
and excellent service
retain and recruit ‘best in class’ and assist 
them to excel
focus on core strengths 
enhance our capabilities 
maintain and grow in markets where mouchel is leading  
expand our market coverage
deliver one mouchel excellence to our 
clients across the world
people
growth
operations
decisions to be made quickly and as close 
to the ground as possible this allows our 
people to be responsive to our clients
each of our operating divisions has its own 
management team with clearly delegated 
authority which provides the governance 
for the majority of daytoday corporate 
decisions any matters that fall outside 
of those authorities are reviewed by the 
mouchel investment committee which 
meets weekly and is chaired by the  
chief executive
the mouchel executive management team 
emt comprises the chief executive group 
finance director group human resources 
director and the divisional managing 
directors the emt meets monthly and 
reviews business performance versus 
strategy the agenda includes health 
safety environment and quality results 
financial results performance against kpis 
and succession planning for the leadership 
team of our top 70 people
the degree of empowerment that we 
practice within mouchel is quite different to 
that employed by many of our competitors 
we view our model as a strong competitive 
advantage which provides responsive 
decision making supported by strong 
appropriate and capable governance
strategy
our fourpronged strategy produced in 
march 2012 was designed to stabilise the 
business and to achieve sustained and 
sustainable profitability it was also designed 
to establish the best way of running the 
business rather than simply cutting costs 
it required us to simplify the organisational 
structure to increase operational focus at 
divisional level maintain and grow in markets 
where mouchel is leading focus on our 
core strengths reduce overhead costs to 
deliver the right cost base for the company 
and increase the focus on our contracts to 
improve profitability and win additional work
over the past year we have simplified our 
organisational structure moving to two 
divisions which has allowed us to focus  
on the markets where we are leading  
and on doing what we do best 
we have also removed some £21m  
of overheads compared to when the 
business was quoted in large part by 
rationalising our property portfolio both the 
reorganisation and overhead cost reductions 
were completed by march 2013 
going forward we have adjusted our 
strategy which allows us to further focus  
on the sectors where mouchel has  
a leading position
outlook
this is an exciting time for mouchel  
we have created a strong platform  
to provide further value to our clients and 
grow our business in areas where we 
already hold leading positions 
the infrastructure services market  
in particular provides ample opportunities 
for us to deliver sustainable growth and 
improved profitability with associated 
shareholder value we have very capable 
leadership at every level in the organisation 
and we also have over 6500 highly skilled 
people who deliver innovative solutions  
on a daily basis 
we will manage our growth carefully  
and ensure that we recruit and promote 
people who match our culture and values 
mouchel is in a process of positive 
transformation so after 125 years  
of forward thinking we are just  
getting started
grant rumbles
chief executive
sustainable  
growth and  
profitability
business review
mouchel annual report and accounts 2013 17 infrastructure 
services  
market 
leading 
through 
i nn o v a t i o n 
mouchel annual report and accounts 2013 18 
business review mouchel annual report and accounts 2013 19
business review mouchel ’s 
infrastructure 
services business 
has had an 
outstanding year 
reporting revenues 
of £388m in 2013
mouchel annual report and accounts 2013 20 
business review we completed the year ahead of budget expectations with 
our integrated contract operations in england scotland  
and australia and our intelligent transport business unit  
all performing particularly well 
infrastructure services embraces a range of our core offerings 
covering highways water and environment businesses operating 
predominantly across the uk but also in the middle east and  
in australia 
in highways and water we operate across the entire lifecycle  
of essential infrastructure assets from demand analysis and business 
case preparation to asset design management maintenance  
and operations
our acquisition in february 2013 of the remaining 50 of our 
highways and maintenance joint venture enterprisemouchel 
positioned us as one of very few companies offering a fully
integrated endtoend highway service we rebranded the 
company as em highway services ltd em in august 2013 
the skills needed to operate across the spectrum of highway 
services differ considerably and as a result many companies have 
found it a difficult model to operate successfully however in the 
eight years since em was created it has worked exceptionally well 
our strong performance since 2007 in delivering the highways 
agency area 3 contract for example has resulted in the award  
of the replacement area 3 asset support contract asc worth  
up to £700m – mouchel’s largest ever win 
many of our infrastructure consultancy services are by their nature 
shortterm em’s multiyear maintenance contracts provide a more 
visible forward order book therefore full ownership of em provides 
mouchel with not only additional stability value and opportunity but 
also the flexibility for em to work collaboratively across infrastructure 
services for example the support it provided joint venture 
downermouchel’s successful recent bid in new south  
wales australia
£388m
revenue
mouchel annual report and accounts 2013 21
business review 100000
km
mouchel manages more than 100000km of roads worldwide
raising the standards
em has now achieved accreditation  
to bs 1 1000 collaborative business 
relationships on four of its highways 
agency and local authority contracts 
representing the uk’s first endtoend 
highway maintenance collaboration 
involving both the client and supply chain 
1
st
em achieved uk’s first endtoend 
highway maintenance collaboration 
accreditation involving both the 
client and supply chain
client’s perspective
‘ changes to the procurement approach 
for resurfacing and traffic management 
services for metropolitan region represent 
the most significant shift under the isa  
to date to modernise our relationship with 
key suppliers for our combined benefit
without the step change in thinking and 
approach by downermouchel this would 
not have eventuated the personnel 
involved have been very diligent and 
persistent in finalising the arrangements 
which have not come easily they deserve 
high acknowledgement for what they  
have achieved’
domenic palumbo 
director of metropolitan operations 
main roads western australia
client’s perspective
‘ our energetic programme of relationship 
management from the very beginning  
of this contract and the proactive inclusion 
of the wider supply chain has already 
achieved significant cashable savings  
and gained industrywide recognition  
and awards’
guy berresford 
ha service manager area 3
procurement strategy pays off
by improving the procurement strategy  
for resurfacing and traffic management 
services in western australia our 
joint venture downermouchel has 
improved safety standards quality 
and value for money for our client 
main roads western australia saving 
them £145000 in the first year
mouchel annual report and accounts 2013 22 
business review no1
mouchel is the no 1 uk consultant 
in roads ciht 2013 consultants 
directory
our intelligent transport systems its 
consultancy services is recognised as the 
industry leader in ‘smart’ use of highways 
and in the delivery of information to road 
users in 2012 we launched our new taranto 
traffic enforcement software product it is 
already being deployed in manchester and 
london and is being used nationally to 
catch drivers avoiding vehicle excise duty 
it is also at the heart of the system which 
will allow barriers to be removed – but toll 
payments to be collected – at the m25 
thames estuary crossings at dartford 
water
water has been a core sector for mouchel 
for many years and we work with almost 
every water and sewerage company in the 
uk our skills and expertise mean we can 
credibly expand our activity in this sector  
by becoming involved in a greater proportion 
of the ‘water lifecycle’ 
in england the next five year cycle of the 
asset management process – amp6 – 
starts in april 2015 and we are currently 
preparing our bids in scotland sr15 will 
shift to a sixyearly cycle and again we are 
positioning ourselves for growth elsewhere 
we see some potential in the republic  
of ireland
a recent competitive bid win for our  
water metering services business gives  
us confidence that we can also develop  
this segment
our marketplaces
as an international business we operate 
across a wide range of market sectors at 
different levels of maturity and buoyancy 
and across a number of geographies  
over the course of the year we have 
improved our focus on those sectors  
which support our growth and generate  
an appropriate margin
highways
within the uk there is an increasing  
political recognition of the importance  
of road infrastructure to the economy and of 
investing in roads to drive economic growth
the highways agency in england is set to 
move to a fiveyear planning cycle which will 
provide much greater forward visibility for our 
business with our largest customer recent 
wins with norfolk county council and a 
coalition of bournemouth poole and dorset 
councils provide longerterm contracts for 
our engineering consultancy services
in scotland there are significant road 
maintenance opportunities as well as major 
improvement schemes including the dualling 
of the a9 between perth and inverness  
and the a96 upgrade between aberdeen 
and inverness 
over the next four years up to 40 
local authority road management and 
maintenance contracts will be let across 
england creating a huge opportunity for 
our em business and for our engineering 
consultancy services to support em in 
delivering these contracts 
full ownership of em 
provides mouchel with 
not only additional 
stability value and 
opportunity but also the 
flexibility for em to work 
collaboratively across 
infrastructure services
business review
mouchel annual report and accounts 2013 23 australia
in australia our downermouchel joint 
venture providing similar integrated  
design management and delivery services 
as em has since 20101 1 managed  
around 40 of the road network  
in western australia
this has allowed us to position ourselves  
to benefit from the first generation 
outsourcing that has been launched  
on the east coast of australia since the 
start of this financial year we have secured 
contract wins in queensland and new 
south wales these wins consolidate 
downermouchel as the primary joint  
venture in the integrated roads market  
in australia and will more than double  
the size of downermouchel during the  
first half of 2014
environment
our environment business provides a 
suite of services such as land referencing 
which can be commissioned individually by 
clients or combined to provide an integrated 
solution these services are vital in gaining 
the approvals every infrastructure project 
requires if it is to proceed and are equally 
important in providing ongoing monitoring 
and remediation services
recent projects include land referencing 
contracts for the hs2 rail project and for  
the thames tideway tunnel 
maritime
previously part of the environment business 
we are giving greater prominence to our 
maritime unit which in the past year  
in the uk has helped to deliver the  
grimsby terminal – a stateoftheart car 
import facility – and in the middle east the 
khalifa port and industrial zone between 
abu dhabi and dubai 
furthermore we have worked in the 
dominican republic over the past 10 
years extending the puerto caucedo 
development 
expansion in international sea trade is  
one factor driving growth as are changes 
in the energy business which are creating 
demand for liquefied petroleum gas 
facilities as well as for offshore and  
‘near shore’ renewable generation
middle east
we have a long tradition of delivering design 
and supervision of infrastructure projects in 
the middle east this part of our business 
has undergone considerable change over 
the past five years reflecting the economic 
downturn since 2008 however with 
some £45bn being spent in the region on 
consultancy alone in the next three years  
we are confident that we can triple both  
our turnover and staff numbers in  
that timeframe
the fact that the uk has built approximately 
60km of new motorway in the past decade 
contrasts dramatically with saudi arabia 
which is building 600km infrastructure 
expansion on a similar scale is also taking 
place in the united arab emirates and 
kuwait where we have been working 
throughout the past 30 years we have  
a new management team in the middle east 
which has detailed local knowledge and 
sound commercial acumen being close  
to our clients is important so we have moved 
to new offices in abu dhabi dubai and in 
the saudi capital riyadh and will shortly 
open a new office in jeddah
there is a considerable number of 
opportunities for us in the middle east 
in highway design management and 
maintenance water and sewerage ports 
and coastal development as well as in 
improving the ‘liveability’ of urban areas
with some £45bn being spent  
in the middle east region on 
consultancy alone in the next 
three years we are confident 
that we can triple both our 
turnover and staff numbers 
in that timeframe
30
yrs
mouchel has worked in the middle 
east for more than 30 years
mouchel annual report and accounts 2013 24 
business review our intelligent 
transport systems 
consultancy services 
are recognised as the 
industry leader in ‘smart’ 
use of highways and in the 
delivery of information  
to road users
125m
people
in the past year our web services  
helped 125 million people plan their  
trips and avoid delays
keeping britain moving
roadside messaging provided by  
network information services our 
joint venture with thales uk improves 
the journeys of up to nine million 
drivers a day in the past year our web 
services helped 125 million people 
plan their trips and avoid delays
business review
mouchel annual report and accounts 2013 25 snow clearance moves up a gear
scotland transerv our joint venture 
with balfour beatty is providing roads 
maintenance services on behalf of 
transport scotland to 22 routes 
across south west scotland spanning 
over 600km of motorways and other 
designated trunk roads this year we 
have invested in a new state of the art 
winter fleet including ‘super gritters’ 
capable of spreading twice as much salt 
as standard gritters to deliver an even 
more effective service to road users 
winning thames tideway consent
the land referencing requirements for  
the proposed thames tideway tunnel  
in london has been one of the most  
complex challenges undertaken by 
mouchel’s land service team to date 
the team continues to provide support 
throughout the examination process 
for development consent approval 
single largest 
customer
mouchel is hm land registry’s single largest customer
mouchel annual report and accounts 2013 26 
business review outlook
our order book is strong providing 
great visibility of future work even in the 
traditionally shorthorizon engineering 
consultancy businesses we are recruiting 
in the region of 600 additional people into 
our infrastructure services business over 
the next 12 months including apprentices 
technicians and graduates 
overall there are more than enough 
opportunities to fuel our growth ambitions 
and infrastructure services is well placed 
to take advantage of this in a targetrich 
environment it will be vital for us to focus 
on those where we can demonstrably add 
value achieve the appropriate commercial 
terms and deliver for our clients
strategy and business model
the infrastructure services strategy is to 
provide clients with an endtoend offering 
this is often marketed through joint ventures 
these collaborative arrangements include 
our scotland transerv joint venture through 
which we secured transport scotland’s 
fourth generation maintenance contract 
for strategic routes in the south west of 
the country also in scotland the mouchel 
fairhurst joint venture has been delivering 
motorway upgrades for several years
our intelligent transport business through 
our peekmouchel joint venture delivers 
management and maintenance of highways 
technology in the east and south east of 
england and through another joint venture 
with thales uk we provide the national 
traffic information service on behalf of the 
highways agency in england these joint 
ventures are an integral part of mouchel’s 
position as the only uk consultant to provide 
full lifecycle its capability
with renewed focus on our engineering 
consultancy business we have begun 
a programme of improvements to our 
operational management and delivery  
this has included implementing best
practice project management processes 
and improving our ability to attract and  
retain the talent we need to resource  
our growth objectives 
our order book is 
strong providing great 
visibility of future work 
even in the traditionally 
shorthorizon engineering 
consultancy businesses
business review
mouchel annual report and accounts 2013 27 mouchel annual report and accounts 2013 28 
business review £700m circa
total project value 
5 years
contract duration
highways agency 
smooth transition  
to new contract
em has successfully adopted the 
highways agency’s new asset support 
contract in area 3 to meet the key 
objectives of safe roads reliable 
journeys and informed travellers – 
while improving sustainability and 
making savings for the client
area 3 in southern england is the second 
largest highways agency area and covers 
some of the oldest and most heavily used 
roads in the country 
the challenge
switching to the new contract required 
a complete reorganisation of em’s staff 
structure including moving nearly 150 
people from the basingstoke head office  
into six area 3 depots without interrupting 
the service to our client 
client’s perspective
‘ the partnering culture within area 3 
across the highways agency em and 
the supply chain has been recognised 
by external awards from the chartered 
institute of highways and transportation 
and bs 1 1000 accreditation this 
collaborative working philosophy has 
been the foundation to a successful 
mobilisation of the new contract’
guy berresford 
ha service manager area 3
the solution
em built on the collaborative working 
relationship it has developed with the 
highways agency and the supply chain  
over recent years our experience in 
planning the mobilisation and demobilisation 
of previous contracts enabled us  
to manage the transition smoothly
it meant changes to the way we worked 
but also included shared training for 
key staff with the highways agency 
to promote joint understanding
by moving our network control centre 
a month early we ensured resilience 
of our key service delivery targets 
ahead of the staff relocation 
the em team identified new approaches  
for the asset support contract such as 
asset incident watchmen who undertake 
routine asset inspections monitor the 
state of the network and report on 
incidents and taking a riskbased approach 
to maintenance we also addressed 
some areas of the contract which had 
been previously underplayed including 
category management and project bank 
account we identified ways to make these 
concepts work finally we introduced 
new it systems to deliver the contract
by taking a collaborative approach and 
using mature lean delivery processes 
em generated savings to the client 
mouchel annual report and accounts 2013 29
business review mouchel 
business 
services  
adding value 
through 
partnership 
mouchel annual report and accounts 2013 30 
business review mouchel annual report and accounts 2013 31
business review mouchel business  
services with 
revenues of £167m 
performed well  
in a challenging  
local authority 
market 
mouchel annual report and accounts 2013 32 
business review mbs is one of the uk’s largest providers of outsourced 
professional and support services to local councils and 
other public bodies such as the police fire and rescue 
services and schools in addition to business services such 
as information and communications technology ict 
human resources hr payroll finance and accounting 
we provide strategic and operational asset management 
master planning design estates and facilities management 
for a substantial property portfolio up and down the country 
despite the current environment of austerity we have had some 
notable wins over the year in june oldham metropolitan borough 
council awarded unity partnership mouchel’s joint venture with the 
council a threeyear extension to the initial 12year contract valued 
at £50m – including the addition of extra services 
this helped to strengthen our overall position in the north west of 
england where we also won a place on the north west pensions 
framework in july this further reinforced our role as the leading 
provider of police pensions in the uk and extended our work with 
the merseyside and cheshire police pension funds – while at the 
same time opening up access to a further 1 1 forces 
in liverpool as well as securing a twoyear extension for our 
property work with the city council mouchel also achieved a major 
breakthrough into the higher education sector in july winning an 
appointment from the university of liverpool for all four lots of its 
property framework
we use our advanced market intelligence to bid only for work that 
we believe we have a good chance of winning our overall success 
rate in 2013 was over 70 – where industrywide a rate of 30 
is deemed acceptable our win rate for getting onto property 
frameworks with local government the police universities and  
the private sector was 80
£167m
revenue
mouchel annual report and accounts 2013 33
business review adult social care
mouchel has established a commissioning 
service to determine how to best provide 
the right service at the right quality time 
and price this covers the spectrum of 
care provision from installing a hand rail  
in someone’s house to providing care  
in an old person’s home
we supported this development with 
the acquisition in june of genica which 
specialises in commissioning in this 
environment we can also combine that 
operational capability with market insight  
into healthcare needs in the future  
derived from our operation of the  
nhs’ centre for workforce intelligence 
we believe that cost savings of up  
to 25 in adult care are achievable  
with the right commissioning model
carbon management
mouchel’s carbon management centre  
of excellence based in bournemouth 
enables local authorities to achieve carbon
reduction targets at the same time as 
reducing costs for example it can help 
councils to halve the carbon footprint of their 
street lighting at the same time as making  
a minimum 50 saving in energy costs 
one of our recent projects involved installing 
photovoltaic solar panels on over 900 
council properties in bournemouth this 
benefits the tenants as they need not take 
electricity from the national grid which  
results in lower energy bills it also benefits 
the council providing it with a source  
of income through the sale to the grid  
of surplus electricity
the marketplace
the local government market our main 
market continues to be challenging  
central government spending cuts over  
the past three years have reduced local 
authority grants by around 25 a further 
average 10 of cuts is due to take 
effect in 2015 this is coupled with an 
understandable unwillingness on behalf 
of local authorities to raise council taxes 
enforced by action from the government  
if they do so 
as a result councils are looking for more 
innovative changes to their provision that  
will allow them to make the necessary 
savings but continue to provide their 
residents with efficient valueformoney 
services while some councils continue to 
opt to deliver their services inhouse others 
see an opportunity to achieve greater value 
by working in partnership with the private 
sector in bournemouth where mouchel 
delivers a large number of services the 
council was actually able to reduce its 
council tax last year in part as a result  
of the efficiencies we delivered 
significant trends in the market include a 
move away from the procurement of multi
service contracts to seeking single service 
providers 
however while continuing financial 
constraints place our clients under  
pressure there is a range of opportunities  
to develop new and innovative models 
to help authorities to solve some of their 
biggest challenges
few are bigger and more intractable than 
adult social care and carbon management
there is a range  
of opportunities  
to develop new and  
innovative models to  
help authorities to solve  
some of their biggest 
challenges
mouchel annual report and accounts 2013 34 
business review 900
mouchel has installed around 900 
solar pvs on council properties in 
bournemouth generating 22gwh
year and helping to reduce tenants’ 
utilities bills
green centre of excellence
our carbon management centre  
which opened in bournemouth in 
february will be the focal point for 
carbonreducing technologies across 
the company the centre aims to 
deliver innovative commerciallysound 
environmentallysustainable projects 
that create jobs for local people and 
make carbon reduction happen
client’s perspective
‘ the mouchel team introduced innovative 
thinking brought lots of energy and 
maintained a high level of commitment 
through the project playing a primary role 
in engaging all the stakeholders…the result 
is a staggeringly improved experience for 
both visitors commuters pedestrians and 
the local community’
rob monaghan 
head of gateways development unit 
economic development  
liverpool city council 
making an entrance in liverpool
a £58m highway and environmental 
improvement project designed and 
project managed by mouchel has 
transformed one of the main routes 
into liverpool city centre improving 
safety and reducing congestion the 
edge lane project features pioneering 
extralow voltage led traffic signals and 
batterysolar powered bollards reducing 
operating and maintenance costs
business review
mouchel annual report and accounts 2013 35 stockbridge village regeneration 
a regeneration scheme has breathed new  
life into the heart of stockbridge village 
knowsley the wideranging project  
designed and implemented by mouchel 
has provided new contemporary 
community buildings shops open 
spaces and state  
of the art facilities all in consultation with  
the local community
police pensions
in july mouchel won single supplier 
status for the cheshire and merseyside 
police pensions framework this 
framework is open to 11 additional police 
forces and will run for three years with 
the potential to extend up to five years 
mouchel is the uk’s leading supplier 
of police pensions administration 
supporting a total of 10 police forces
no1
mouchel is the uk’s no1 provider of police pensions administration
mouchel annual report and accounts 2013 36 
business review outlook
the market outlook for 2014 continues  
to be challenging however mouchel  
offers our clients – and potential clients –  
a number of advantages
we are able to be more dynamic and flexible 
in our approach than some of our larger 
competitors – and we concentrate our 
efforts on driving innovation in areas that  
give us differentiation 
at the same time we are well established in 
outsourcing markets that have high barriers 
to entry – markets where ’referenceability’ 
is crucial we are able to demonstrate 
extensive credentials in respect of valuefor
money innovation and excellence
we are also working to leverage our 
expertise in the public sector into new areas 
for example the university market and we 
are also exploring the options to extend our 
pensions administration expertise into the 
private sector
our clear understanding of the areas  
in which we are excellent and therefore 
where we can provide the most value – 
as well as our focus on developing the 
innovative solutions that our clients demand 
– places us in a good position to help them 
to meet their strategic objectives
our strategy and business model
the mbs strategy is twofold to maintain 
our leading position in the market and strive 
to ensure we are in the top three in any 
market in which we operate we will grow 
the business by providing our differentiated 
offering to our clients
we are currently in leading positions in both 
the police pensions and local government 
business process outsourcing sectors
we are partway through a threeyear plan 
in which the first step was to consolidate the 
business and the second to understand the 
areas in which we are excellent and where 
that excellence is applicable in the wider 
marketplace these steps have  
been completed
the third step is to grow we now have  
a sales focus based on our vision and values 
– innovation excellence responsibility and 
integrity we have a clear understanding  
of what our clients need of our offer  
and where we can sell it we are in a  
strong position to influence our markets
mouchel works in partnership with its clients 
to establish how a service can be delivered 
most efficiently and effectively and then we 
deliver it we give our clients a different view 
from one that they could have developed 
themselves and for those who do not wish 
to outsource a service we provide targeted 
consultancy services enabling them to make 
their own savings
the skills within the division enable us  
to provide clients with excellent value for 
money in the areas of property process 
people and technology we employ 
experienced individuals who understand 
how to transform a business process  
to ensure it is delivered most effectively
mouchel works in 
partnership with its clients 
to establish how a service can 
be delivered most efficiently 
and effectively and then we 
deliver it 
business review
mouchel annual report and accounts 2013 37 £50m 
value of contract 
extension
12 3 years
contract duration
unity partnership 
boosting public 
services in oldham
client’s perspective
‘ our partnership with mouchel has  
recently been strengthened to meet  
the challenging times facing the public 
sector and the community of oldham  
as a council we have great ambitions 
for the town and colleagues at unity 
partnership are playing a key role in 
helping us in achieving them we believe 
that the recently revamped partnership  
will help position unity to grow its business 
within greater manchester thereby 
strengthening the overall mouchel  
offer within the north west’
charlie parker chief executive  
oldham metropolitan borough council
over the past six years the unity 
partnership has achieved its aim  
of improving services for local people 
in oldham since its formation in 
2007 as a joint venture between 
mouchel and oldham council 
unity has gone from strength to 
strength with more public services 
integrated into the partnership
unity has supported the council’s wider 
regeneration aims providing business 
expertise and created many mentoring 
training and work experience opportunities 
to help local people find employment it has 
won a range of awards and accreditations 
along the way becoming the first business 
in greater manchester to gain accreditation 
with the institute of education business 
excellence national employability quality 
standard known as education ready
our success has meant that the initial 
12year contract is now being extended 
by three years to may 2022 
the challenge
oldham council is under continued pressure 
from central government to make significant 
cost savings at a time when demand for 
services is increasing to meet westminster’s 
stretching targets the council needs to 
transform its services drive efficiencies 
and in some cases reduce provision
like many boroughs in the north west 
oldham has high levels of unemployment 
particularly among young people
the solution
the threeyear contract extension gives 
us the opportunity to contribute further to 
the local community and help the council 
provide services that are value for money
for example unity is investing £200000 
in the council’s ‘get oldham working’ 
campaign which aims to create 2015 
employment opportunities by the end 
of 2015 the business has also recently 
launched a new community engagement 
initiative called the 500 club which allows 
staff to take time off to volunteer in the local 
community four senior managers of the 
partnership set the ball rolling by redecorating 
a kitchen at a supported housing scheme
we are also continuing to build strong 
relationships with other organisations to make 
oldham a great place to live work and visit
mouchel annual report and accounts 2013 38 
business review mouchel annual report and accounts 2013 39
business review financial review
underlying ebitda of £370m  
a margin of 67
paul rayner
group finance director
group results
an analysis of the underlying results is set out below
2013
£m
2012
£m
total revenue 5553 499
underlying operating profit 281 11
statutory operating profitloss 239 871
finance income 03 03
finance costs 76 08
underlying profit before tax 208 07
profitloss before tax 166 876
the first full year’s results following the  
2012 restructuring are presented above  
the comparative period is a fiveweek 
period from incorporation to the end  
of the last accounting year and hence  
does not provide meaningful comparisons  
for the 12 months to 30 september 2013
in february 2013 the remaining 50 of 
enterprisemouchel ltd renamed as em 
highway services ltd in august 2013 – 
‘em’ was acquired which has generated 
additional revenue and operating profit  
for the group 
after interest an underlying profit before tax 
of £208m 2012 £07m was generated 
the results for the year were in excess  
of budgeted expectations
an analysis of total revenue and underlying 
profit is set out opposite
mouchel annual report and accounts 2013 40 
business review 2013 2012
revenue 
£m
underlying 
operating 
profit 
£m
underlying 
operating 
profit 

revenue 
£m
underlying 
operating 
profit 
£m
underlying 
operating 
profit 

infrastructure services is 3879 283 73 313 18 58
mouchel business services mbs 1674 53 32 186 12 65
5553 336 499 30
unallocated corporate costs 55 19
underlying operating profit 281 51 11 22
depreciation loss on disposal and amortisation costs were £89m 2012 £07m and underlying ebitda was £37 0m 2012 £18m  
a margin of 67 2012 36 
the is division profitability improved as a result of lower overheads and a mix of higher margin work mbs had a high depreciation charge  
in the year and this coupled with the mix of profits on contract revenues contributed to lower overall margins the depreciation charge  
is expected to be lower in 2014
analysis of nonunderlying items
management uses underlying profit to measure and manage the financial performance of the group on a daytoday basis the table  
below summarises the items the board considers to be of a nonunderlying nature
the analysis of these nonunderlying items is set out below
2013 
£m
2012 
£m
acquisition transaction costs 12 –
amortisation of intangible assets arising from business combinations 48 03
impairment of goodwill – 879
charge to income statement on acquired overhedged derivatives – 01
release of onerous contract provisions 38 –
release of restructuring provisions 21 –
costs relating to restructuring activities 41 –
total nonunderlying items 42 883
acquisition transaction costs relate to the acquisition of 50 of em in february 2013
£281m
underlying operating profit  
a margin of 5 1
£393m
underlying cash generated  
in operating activities
business review
mouchel annual report and accounts 2013 41 net debt at the end of the 
year was £455m a ratio of  
12 times to underlying ebitda
a reconciliation between underlying profit and statutory operating profitloss is set out below
2013 
£m
2012 
£m
underlying operating profit 281 11
less total nonunderlying items above 42 883
nonunderlying items included with finance costs – 01
statutory operating profitloss 239 871
a reconciliation between underlying profit before tax and statutory profitloss before tax is set out below
2013 
£m
2012 
£m
underlying profit before tax 208 07
less total nonunderlying items 42 883
statutory profitloss before tax 166 876
taxation
a tax credit arises on the profit for the year due to the utilisation of brought forward losses in the prior period there was no taxation
cashflow
a summary of the group’s cash flow is set out below
2013 
£m
2012 
£m
cash generated from operations before working capital movements 387 20
working capital movements 06 83
underlying cash generatedused in operating activities 393 63
restructuring and onerous lease costs 107 10
contributions to defined benefit pension schemes 94 06
overseas tax paid 03 –
net cash generatedused in operating activities 189 79
financial review continued
mouchel annual report and accounts 2013 42 
business review term loan used to  
acquire the share capital  
of em was repaid in full  
by the year end
the group’s underlying cash generated 
from operations was £393m 140 
converted from underlying operating 
profit and 106 from underlying ebitda 
resulting from strong working capital 
management following the completion  
of the restructuring
the restructuring costs were paid to 
complete the restructuring which started  
during 2012
contributions to the pension scheme 
include deficit contributions pension 
fees and levies to the pension protection 
fund the pension fees and levies are 
anticipated to reduce in 2014
before the acquisition of em the group 
generated net cash flow of £85m compared 
to an outflow in 2012
debt and financing
at the end of the year net debt stood  
at £455m 2012 £40 1m the net debt  
to underlying ebitda ratio was 12 times 
the group has £100m of bank facilities  
of which £40m relates to a revolving  
credit facility and the balance a term  
loan the facilities have an expiry date  
of 31 july 2016 
the group has various covenants tested 
quarterly with two key ones being
• net debt as a ratio of consolidated 
ebitda and
• cash flow to debt service cost
all covenants were met in the year to  
30 september 2013
further details are set out in note 18 of the 
financial statements
acquisition of enterprisemouchel em
on 21 february 2013 the 50 of em not 
already owned was acquired for £25m 
before costs from enterprise plc the 
acquisition was funded with a mediumterm 
loan of £215m and £35m cash 
since the acquisition the company has been 
renamed em highway services ltd and the 
term loan used to acquire the share capital 
was repaid in full by the end of september 
2013 full details of this and two small 
acquisitions are contained in note 31
pensions
the deficit on the group’s defined benefit 
schemes before associated tax credits  
as defined by ias 19 accounting for pension 
costs was £530m 2012 £522m after tax 
the deficit was £420m 2012 £402m  
full details are contained within note 30
the group operates three defined benefit 
schemes ‘the schemes’  the schemes 
were closed to future accrual on 31 
december 2010 employees are now  
offered membership of a defined 
contribution pension scheme 
the triennial valuation at 31 march 2013 is 
currently being progressed and is expected 
to be signed off in the coming months
going concern
the directors have acknowledged the latest 
guidance on going concern in reviewing the 
future prospects of the group the following 
factors have been considered
• cash flow forecasts for a period of at least 
12 months from the date of approval  
of these financial statements
• the group’s pipeline was £24bn at the 
end of september 2013
• the group’s order book was £17bn  
at the end of september 2013 and
• the group has started the year well  
ahead of this time last year and
• the compliance with banking covenants 
for the forecast period
based on the above having made 
appropriate enquiries and reviewed cash 
flow forecasts the directors consider  
it reasonable to assume the group and  
the company has adequate resources  
to continue as a going concern
accordingly the directors have adopted 
the going concern basis in preparing the 
financial statements
post balance sheet events
on 10 october 2013 89000 new b  
deferred shares were issued
on 11 december 2013 the group 
renegotiated its banking facilities  
the key change to the agreement was  
to include em highway services ltd as  
a guarantor to reflect that it is now a wholly 
owned subsidiary 
paul rayner 
group finance director
business review
mouchel annual report and accounts 2013 43 risk review
the board approved a new 
group risk  opportunity 
management policy  
during the year and 
constituted a group  
risk committee
the board is responsible for the group’s 
systems of internal control and its risk 
management systems the board 
approved a new group risk  opportunity 
management policy during the year and 
constituted a group risk committee 
with agreed terms of reference the 
committee meets quarterly it reviews the 
key risks associated with the achievement 
of the annual budget and the threeyear 
plan for each business and the risk control 
procedures implemented the committee 
reports to the audit committee and through 
this process the board has identified the 
following principal risks currently facing 
the group the mitigating actions taken by 
the group management to address these 
risks are also set out below the group 
also mitigates its risk exposure through an 
insurance programme that covers property 
and liability risks where it is appropriate and 
cost effective to do so
the process
a quarterly cycle has been agreed 
to consolidate the risk results 
identified by the divisional boards to 
the group board via the group risk 
committee and is designed to 
• add value without onerous 
bureaucracy
• improve standardisation and 
methodically identify and manage risk
• improve overall performance through 
feedback of ‘lessons learnt’
• provide a highlevel strategy to 
operate on a mandatory basis across 
the group and provide the audit 
committee with assurance that major 
risks have been identified and are 
regularly assessed
• have enough flexibility to enable the 
divisions to develop an appropriate 
process to comply with the group 
strategy
• prioritise risks to ensure each entity 
identifies and ranks their ‘top 10’ and
• enable consolidation of ‘top 10s’ 
at each level of the organisational 
hierarchy
1
identifying risks
2
analysing risks
and controls
 to manage
identiﬁed risks
3
determining
management
actions required
4
reporting
and monitoring
our assessment of
strategic ﬁnancial
operational and
project risks
mouchel annual report and accounts 2013 44 
business review health  safety
risk mitigation actions
a lack of focus in this area could result in inconsistent 
application of controls
there is a clear formal strategy for sheq safety health environment and 
quality and this allied to the ongoing sheq audit process and engagement 
with the business are key mitigations in this area
business
risk mitigation actions
with the ongoing challenges in our business areas 
there continues to be a risk of not delivering the agreed 
budget targets
with the significant growth plans anticipated in the 
middle east this provides the challenge of ensuring 
working capital levels are adequate
significant organisational changes have been made in mbs to focus on the 
markets the ownership of 100 of em has mitigated this risk the main 
challenge is the middle east business a clear strategy and targets have been 
agreed with the new and more experienced management team which is felt  
to reduce these risks
there have been improvements to cash forecasting and continued management 
of working capital
people
risk mitigation actions
there is a risk that appropriately qualified and 
experienced staff will not be found to fill senior 
vacancies to deliver the business growth expectations 
within the group
specific attention is being given to identification of key ‘hires’ and mediumlonger
term incentivisation schemes are being considered
we have established a dedicated recruitment centre in the uk
it
risk mitigation actions
as a result of the significant organisational and 
operational changes there continues to be a risk that 
our it strategy system and hardware are not ready  
to ensure appropriate internal service delivery
a clear strategy has recently been approved which will ensure we deliver the 
improvements required to provide appropriate internal it services to agreed 
standards
the implementation of these improvements is also being monitored to ensure 
appropriate delivery 
bribery act compliance
risk mitigation actions
there is a continuing need to ensure compliance with 
the bribery act particularly in some of our nonuk 
operational areas consequently there is a significant 
reputational risk of non compliance
there has been significant work completed on complying with the ministry of 
justice guidance during the last year the key mitigations being a complete risk 
assessment of our operations both geographically and functionally which has 
driven a risk based training programme of key staff this online training is now 
being rolled out to all employees and will be part of our induction programme for 
new employees a new suite of ethical fraud and whistleblowing policies has 
been implemented during the year which includes an improved independent 
whistleblowing service being communicated as part of the training programme
pensions
risk mitigation actions
generally the imbalance between bond and  
interest rates continues to potentially cause  
greater pension deficits
a clear strategy has been agreed and approved by the board in october 2013  
to mitigate the risk of these deficits
business review
mouchel annual report and accounts 2013 45 corporate responsibility review
supporting communities is 
what we do we are committed 
to having a positive impact on 
society through the way we do 
business – this includes both 
how we conduct our 
operations as well as the 
services that we provide
workplace
mouchel considers the health and wellbeing 
of its people fundamental to delivering 
excellent services to its clients and through 
our commitment to supporting a healthy 
happy and motivated workforce we are able 
to maximise the productivity of our people 
safety culture
the health and safety of mouchel’s 
employees and of the communities we 
serve is a top priority our aim is to provide 
our people with engaging and rewarding 
careers and a safe working environment 
where diversity is appreciated and a 
healthy worklife balance is supported 
our health and safety vision is simple –  
we want all of our employees to go home 
safe and healthy at the end of each day 
fundamental to achieving this vision is the 
culture set by the leaders of our organisation 
during the year we have continued 
to implement our safety leadership 
programme with members of our 
leadership team undertaking ‘iosh for 
senior executives’ training and middle 
managers participating in our iosh 
managing safety and the environment 
programme this will continue throughout 
2014 – to reach all our decision makers – 
and will be supported by safety leadership 
tours designed to reinforce the behaviours 
we expect from our people 
our safety management systems reach all 
parts of our uk business and provide the 
framework for the effective management 
of health and safety risks these systems 
are independently accredited to ohsas 
18001 by lloyds register lrqa and 
in the coming year we will extend this 
registration to cover our operations in the 
middle east where expectations for robust 
safety management are continually rising
em area 3 – ‘attitude matters’ behavioural  
safety programme 
following employee feedback we looked at ways to better engage our workforce and 
reinforce our health and safety hs culture by influencing behaviour through better 
engagement and understanding of the risks that are particularly inherent in its area 
of expertise it focused on delivering messages in a fun and engaging way seeking 
to improve their dissemination this approach led to an improved behavioural culture 
and a change in the subsequent behaviour of staff demonstrated through increased 
reporting of near misses staff willingness to act as peer wardens in respect of 
hs monitoring and inspections active participation at hs worker forums and 
more suggestions and feedback on new personal protective equipment and trials 
among its successes ‘attitude matters’ has already contributed to a reduction in the 
absence rate from 138 to 083 and improved staff turnover rates 
mouchel annual report and accounts 2013 46 
business review safety performance
mouchel does not compromise on the 
health and safety of its employees or its 
supply chain and during the year we have 
continued to embed a ‘zero harm’ safety 
culture throughout the organisation focusing 
on eliminating the potential for serious  
injury and ill health while minimising the 
hazards our people face in the delivery  
of all of our services
the most common causes of injury across 
the group during 2013 were related to slips 
and trips falls and road traffic accidents – 
and we have continued to build employee 
awareness of these issues through 
our companywide safety competency 
framework and the use of our road risk 
management systems during the year we 
identified an increasing trend in incidents of 
both physical and verbal assault – primarily 
within our civil enforcement contracts in 
london and our local authority public
facing helpdesk services – leading to 
an improvement programme around 
our controls for conflict management
resolution and the establishment of 
stronger relationships with local law 
enforcement agencies
we have continued to encourage greater 
levels of incident near miss and safety 
observation reporting – a critical element 
of our safety culture – and the introduction 
of a 247 incident reporting hotline has led 
to improvements in response times and 
the effectiveness of incident management 
across our office and sitebased teams  
in the coming year we will expand our 
network of safety ‘observers’ focusing 
on the early identification and proactive 
elimination of safety hazards across  
the business 
our commitment 
‘our commitment to corporate responsibility  
is underpinned by our vision and values  
we acknowledge that if we are to be recognised 
for excellence we must run our business with the 
highest levels of integrity – taking responsibility 
for all of our actions – while fostering a culture 
of innovation that continuall y drives us to find 
smarter safer and more sustainable ways  
to deliver our services ’
grant rumbles
chief executive
technology – civil enforcement officer safety
being a civil enforcement officer particularly in london can be extremely challenging 
with daily verbal – and sometimes physical – abuse recognising the need to help 
parking enforcement managers ensure the hs of their people we have introduced our 
taranto software platform using gps tracking the taranto trail application provides 
enforcement managers with a visual display of the whereabouts of all of their onstreet 
staff identifying each staff member with an icon and a unique number when an hs 
incident occurs the product allows managers to quickly identify the nearest supervisor 
who can then be directed to the location to provide support and liaise with the police 
the product also has inbuilt reporting capability so that managers can identify areas 
where hs issues are most frequent 
business review
mouchel annual report and accounts 2013 47 corporate responsibility review continued
our accident frequency rate afr 
provides a measure of the success of our 
safety performance during the year our 
afr for riddor reportable incidents fell 
by over 20 with performance across 
all our core sectors remaining well below 
industry averages while we saw an increase 
in minor incidents during 2013 we are 
confident that this is a result of our improved 
reporting processes and does not reflect 
any deficiencies in our safety management 
policies or procedures 
during 2013 mouchel successfully delivered 
its services without prosecution under 
the health and safety regulations three 
incidents of ‘service strikes’ within our em 
highway business – accidental damage to 
utilities services while digging in the ground – 
did however result in improvement notices 
being issued by the health and safety 
executive this has led to the introduction 
of improved systems and training for our 
highways teams in order to prevent  
a recurrence 
this performance – along with our wider 
approach to occupational safety and health 
– has been recognised in the uk for the 
seventh consecutive year by a gold medal 
from the royal society for the prevention  
of accidents rospa
employee engagement and wellbeing
at mouchel people are our greatest asset 
we ensure that we undertake open and 
transparent communication in everything  
we do to ensure that our employees 
are kept fully informed and have an 
opportunity to engage in twoway 
communications we have a structured 
internal communications framework 
in place whereby we use a variety of 
channels to engage with our staff from 
short quarterly videos from the chief 
executive the intranet a quarterly 
newsletter and facetoface manager 
briefings to employee forums and oneto
one conversations – whichever channel  
is the most appropriate for the situation 
over the past year we have focused on 
reinforcing the pride in mouchel among 
our people many of whom have been 
with us through our more difficult times 
celebrations around our 125th anniversary  
of the founding of the companies that 
are now mouchel have focused on our 
continuing commitment to supporting 
communities in which we operate 
um al aish new lpg filling plant kuwait
working alongside our partners we believe we have contributed to the exemplary health 
and safety record on the um al aish project demonstrated by the recent achievement  
of the 5 million safe man hours without any lost time injury
000
002
004
006
008
010
012
014
016
018
3 year riddor frequency rate
1  accident frequency rate afr is calculated in line with hse guidance using the
 formula number of riddor accidentsnumber of working hoursx100000
2 for completeness data for em highway services ltd has been included from 
 1 october 2012 to 31 sept 2013
sep 13
aug 13
jul 13
jun 13
may 13
apr 13
mar 13
feb 13
jan 13
dec 12
nov 12
oct 12
sep 12
aug 12
jul 12
jun 12
may 12
apr 12
mar 12
feb 12
jan 12
dec 11
nov 11
oct 11
mouchel annual report and accounts 2013 48 
business review employee surveys year on year confirm 
that mouchel employees like working for 
mouchel because they are able to give back 
to society both through their day jobs – it is 
what mouchel does – but also through the 
support mouchel gives them through the 
recently updated community involvement 
policy see community p50 
since 2006 we have used the annual best 
companies employee engagement survey 
to gauge the views of our employees 
it is a simple yet structured model that 
has allowed us to effectively measure 
engagement year on year 
our four areas of focus this year – based 
on last year’s survey – have been on how 
we develop our employees and help them 
to deliver the best possible services to our 
clients how we develop our leaders  
so they can direct motivate and inspire  
our employees and create a great place for  
them to work how we help our employees 
feel proud to work for mouchel and how  
our managers communicate and support 
their people 
wellbeing
this year we introduced the global 
corporate challenge a global initiative 
to improve the health and quality of life 
of employees some 13 mouchel teams 
signedup for this initiative from offices all 
around the country each participant is a 
given a pedometer and is encouraged to 
walk run swim or ride as many kilometres 
as possible by taking part employees are 
engaging in a healthier lifestyle
in september 2013 mouchel became a 
signatory to the department of health’s 
construction and engineering sector ‘health 
pledge’ as a result of this pledge we have 
committed to taking proactive action to 
manage the causes of occupational disease 
and improve the health and wellbeing of 
our people in the coming year we will work 
closely with other signatories – and our 
occupational health consultants santia 
– to develop early intervention strategies 
and preventative programmes to actively 
promote health and wellbeing issues across 
our workforce 
earlier in the year mouchel launched a pilot 
better health campaign inviting employees 
from our water leakage teams based at the 
thames water depot in deephams to take 
part in health screenings a number of health 
awareness training sessions and toolbox 
talks took place before a remarkable 95 
of employees underwent a health screening 
provided by santia the success of this 
pilot has led us to develop a companywide 
health awareness programme which we will 
implement across the business during 2014 
through a series of road shows and local 
engagement events
learning and development 
our competitiveness depends on how 
well we harness the wide range of skills 
knowledge and potential in our people 
we aim to identify and nurture the talents 
of all our people by providing access to 
training and development in our technical 
specialisms project management and core 
skills training such as customer service 
effective communications and coaching  
and mentoring
leadership training
‘great leadership is at the heart of all 
successful companies we are committed 
to excellence in all we do and as part of 
this we need to ensure that the mouchel 
leadership team is creating a culture  
of accountability fostering collaboration 
ensuring innovation is valued and 
creating great relationships both with 
our clients and with our people if we 
do all this and set the bar to be a high 
performing business then we will exceed 
expectations’ grant rumbles  
chief executive mouchel
the group leadership team comprises 
70 of our most senior people and meets 
two times per year and has monthly 
conference calls to share information 
on our future direction and strategy 
significant action has been taken to 
support our leadership development which 
has culminated in the design and roll out 
of the leadership passport for top leaders 
over the next 18 months the passport 
aims to further develop the leadership 
capability in mouchel in three key areas 
personal effectiveness business acumen 
and internal governance and compliance
youth clubs
unity partnership a joint venture 
between mouchel and oldham council 
celebrated 125 years of mouchel 
supporting communities by donating 
125 annual memberships to the mahdlo 
youth zone youth centre to young 
people across the borough mahdlo 
youth zone’s state of the art facilities 
provide a wealth of activities for young 
people and with the support of local 
businesses deliver activities at a heavily 
subsidised cost to young people 
business review
mouchel annual report and accounts 2013 49 corporate responsibility review continued
diversity and equality
mouchel is committed to representing the 
communities we serve and to eliminating 
discrimination and encouraging a diverse 
workforce we provide an environment 
of respect and inclusion that recognises 
and values the unique skills experiences 
and perspectives that each employee 
contributes toward our business success 
we are committed to the fair treatment of 
people regardless of sex race age religion 
or belief gender identity marriage and civil 
partnership status pregnancy and parental 
obligations 
we value the diversity of experience which 
drives the creativity and innovation of our 
people to help solve our clients’ challenges 
giving us a competitive advantage in the 
marketplace
code of conduct and ethics
corporate and personal integrity is important 
to mouchel integrity is one of the key values 
within our business which means we apply 
a strict code of conduct across all areas 
in which we do business our policies on 
employee conduct ethics whistleblowing 
and fraud set the standards we expect of 
our people conduct and ethics and the 
fraud policies in general form part of our 
online induction for all new starters and 
can be accessed by staff via the corporate 
intranet and staff handbooks
community 
mouchel works with its many partners to 
improve and regenerate local communities 
– reducing congestion and pollution 
on the highways transforming learning 
environments for school pupils and 
reducing leakage from the mains water 
distribution networks – and as such works 
with and provides services to a diverse 
range of communities
we believe that by encouraging 
our employees to engage in social 
environmental and economic initiatives  
in the communities within which they work 
we are bringing further benefits to those 
communities to the relevant voluntary and 
charity organisations involved within them 
and to our wider stakeholders 
in january 2013 in response to feedback 
from employees we updated our 
community involvement policy encouraging 
individual and team volunteering as well 
as both local and national fundraising the 
policy emphasises and favours however 
active participation within the communities 
rather than purely financial support 
there are four key elements to the policy 
first mouchel will match the time employees 
spend volunteering during nonworking time 
with time spent volunteering in work time 
up to a maximum of two days second we 
allow paid time for teams who are keen to 
give their expertise and time to local charities 
andor schools third we match fund the 
teams that raise the most amount of money 
on specifically designated national charity 
days finally employees can ‘give as you 
earn’ through mouchel benefits a tax
effective way to give to charity
between january and yearend  
we match funded one national charity  
day for which the local offices raised  
a total of £4200 including £1230 match 
funding from mouchel
this year we also celebrated the  
125th anniversary of the founding  
of the companies which are now mouchel  
over the course of the year we have 
celebrated our past recommitted our 
support for communities through our 
updated community involvement policy  
and engaged our employees in our  
future direction 
we selected barnardo’s the leading  
uk children’s charity as mouchel’s 
corporate charity for activities related  
to the anniversary mouchel’s founder  
louis gustav mouchel left part of his  
estate to barnardo’s in 1908
in addition to holding a 125 air miles raffle 
250 of our employees clients partners and 
other stakeholders abseiled off the battersea 
power station in june 2013 raising a total of 
more than £47 000 for barnardo’s including 
£13500 match funding from mouchel
environment
mouchel works with clients and partners 
every day to reduce the environmental 
burden associated with the delivery of 
the uk’s essential asset management 
maintenance and citizen services our goal 
is to continually minimise the environmental 
damage created by our ‘direct’ activities –  
as this not only benefits the environment  
but also helps to reduce costs – while 
working with our clients to develop 
engineering solutions and efficient public 
services that meet the sustainability 
aspirations of today’s society 
mouchel’s unique and diverse mix of 
engineering and environment skills gives us 
the capability to tackle the many challenges 
presented by large complex projects with 
environmental considerations 
flood protection
in august 2012 the town of comrie in 
perthshire suffered extensive flooding 
perth and kinross council pkc 
commissioned mouchel to develop 
and design flood protection measures 
during the design process another 
flood struck the community damaging 
more than 150 properties and giving the 
project an even greater sense of urgency 
mouchel worked in partnership with 
pkc and the community undertaking 
extensive consultation the works 
included construction of rock armour 
protection along the riverbank removal 
of a large gravel bar from the riverbed 
and the creations of rock weirs to slow 
down flow a geotextile placed on new 
embankments to prevent erosion was 
covered by locally sourced topsoil and 
seeded with appropriate wild flowers 
protecting the 
environment
mouchel won the ‘positive environmental 
impact’ award at yorkshire water 
services’ yws business excellence 
awards yws is the ninth largest water 
utility company in the world with 47 
million clients the award was given to the 
bathing water modelling team for their 
work protecting the beaches  
of yorkshire’s coastline 
mouchel annual report and accounts 2013 50 
business review young engineers of tomorrow
belfast metropolitan college introduced a project based learning pbl unit into its 
hnd civil engineering programme to give students examples of everyday work within 
the civil engineering industry – to bring additional practical relevance to academic 
courses develop environmental responsibility and provide students with the opportunity 
to work with people in the industry mouchel has helped the college since the start of 
pbl in 2007  developing flood risk assessment and drainage pbl exercises for these 
engineers of tomorrow 
protectingenhancing local heritage
mouchel’s castle square car park retaining wall scheme won the heritage category 
at the annual institution of civil engineers ice west midlands awards in may the 700
year wall situated near the town centre in ludlow shropshire supports a highvolume 
parking lot it is part of the medieval town wall and is a scheduled ancient monument 
the preservation work needed to be sympathetic to its heritage status while minimising 
disturbance within the town the solution successfully blended modern and traditional 
technologies to safeguard the wall’s longterm structural integrity and the work was 
completed to programme and budget in addition to construction activities training was 
provided for two apprentice stone masons 
m42 ‘all lanes’ running
as a recognised uk leader in intelligent 
transportation consultancy services we 
understand and analyse the processes 
systems and networks that keep our 
towns cities motorways and people 
moving keeping users informed with 
uptotheminute travel and traffic 
information our prominent role in the 
highways agency’s ha managed 
motorways programme has continued 
this year where the use of live road 
user information and ‘all lane’ running 
schemes – along 121km of uk motorway  
– is helping to reduce congestion and 
vehicle emissions at peak times while 
improving road user safety 
our environmental management systems 
– implemented across all operational 
areas – provide the framework for the 
effective management of environmental 
risks and opportunities associated with the 
delivery of our services these systems are 
independently accredited to iso 14001 by 
lloyds register lrqa 
in the year ending 30 september 2013 
there were no enforcement actions against 
mouchel relating to environmental matters 
and to ensure sustained visibility of potential 
regulatory risks within both office and 
site environments we have continued to 
encourage greater levels of environmental 
incident reporting throughout the business
climate change and carbon
as a provider of longterm services and 
infrastructure the management of carbon 
emissions is an important element in all 
of mouchel’s service offerings we are 
committed to operating our business with 
the minimum carbon footprint and we  
work closely with our clients to develop 
energy efficient solutions that enable  
them to meet the demands of a future  
low carbon economy
business review
mouchel annual report and accounts 2013 51 corporate responsibility review continued
we have continued to build on the 
foundations of our carbon reduction strategy 
– focusing on reducing business travel 
emissions and monitoring office energy 
consumption within our uk offices we 
have continued to raise awareness around 
energy efficiency and in the coming year will 
establish energy reduction targets for offices 
where we have operational control over 
utilities provisions 
as part of our corporate green travel plan 
all employees are encouraged to consider 
sustainable business travel alternatives 
supported by a range of incentivised green 
options these include companywide 
telephonevideo and webconferencing 
systems across which 48502 hours of 
electronic ‘meetings’ were held during  
2013 avoiding the need to travel on 
business altogether 
the success of these programmes is 
reflected in our performance for the year 
absolute carbon emissions across the 
group during 2013 amounted to 1067 4 
tco2e representing a 24 reduction on the 
previous year while our carbon ‘intensity’ – 
an efficiency measure relating emissions to 
business activity – fell by 8 to 1925 tco2e 
per £m turnover
emissions reporting
as a result of the growing need for 
transparency in emissions reporting 
we continue to align our emissions 
measurement with the greenhouse 
gas protocol ghg and have made a 
commitment to achieving carbon trust 
standard certification for our uk emissions 
by the end of the year in 2014 we will extend 
our reporting to capture emissions from our 
overseas operations where practical
during the year we participated in the 
voluntary carbon disclosure project cdp 
which benchmarks our carbon management 
performance against similar organisations in 
our sectors and helps clients to establish the 
carbon footprint of their supply chains in the 
coming year we will use the cdp framework 
to identify areas for improvement within  
our governance processes for the 
management of operational carbon 
protecting wildlife 
while stimulating 
regeneration
in order to stimulate redevelopment on 
canvey island in the thames estuary 
essex county council needed to build 
a strategic link road to increase local 
road capacity however the route 
required going through land designated 
within the canvey wick site of special 
scientific interest sssi the area was 
home to a number of protected species 
including great crested newts water 
voles reptiles and barn owls and the 
scheme drew objections from a number 
of conservation bodies including 
natural england the environmental 
impact assessment required extensive 
consultation and negotiation but the 
mitigation work undertaken by mouchel 
to compensate for the direct loss of land 
and fragmentation of the sssi led to the 
direct support of natural england and 
consent to build the road 
total tonnes co
2
e by emission source 
tonnes co
2
e
business travel operational fuel use premises energy use
0 2000 4000 6000 8000 10000 12000 14000 16000
1011 5883 5791 3380
1112
1213 2849 4142 3682
4486 5226 4413
previously published emissions data for 20089 and 200910 have been adjusted within 
this table to account for changes within defra’s carbon calculation factors
3 year carbon reduction trends
201011 201112 20112013
absolute emissions tonnes of co
2
e 15053 14125 10674
intensity tonnes of co
2
e£m 
turnover
2156 2090 1925
tonnes of co
2
e
head
143 178 142
1  for completeness data for em highway services ltd has been included for all three years 
2010 to 2013
mouchel annual report and accounts 2013 52 
business review sustainable schools design 
mouchel designed and project managed the new jeavons wood school located in  
a wooded area part of the wooded area was to be reconfigured to accommodate 
the new school and the remainder was to remain undeveloped as a public amenity 
sustainability was at the forefront of this design which responded to the exciting circular 
shape of the wooded area the majority of the existing trees were retained and for each 
tree lost another tree was planted due to the high thermal mass of the building within 
a well insulated envelope the interior temperature is comfortable and energy can be 
conserved by minimising heat loss the classrooms benefit from cross ventilation and  
the use of stack effect through the room using clerestory windows within the pitched  
roof area a ground source heat pump supported the school’s heating requirements 
and was built in conjunction with under floor heating the building design achieved 
a ‘very good’ breeam schools rating which is based on its economic social and 
environmental sustainability 
water efficiency
northumbrian water limited nwl 
commissioned mouchel to support 
the delivery of important environmental 
targets through a fiveyear water 
efficiency contract we engage directly 
with nwl ’s clients in their homes  
to provide them with the technology and 
advice which will help them to significantly 
reduce their water consumption and 
bills our team has installed 120000 
individual water saving products in  
over 16000 properties helping nwl  
to achieve industry leading performance 
in terms of water savings 
mouchel – em – 
ceequal
em is one of the first term maintenance 
contractors to achieve an ‘excellent’ 
rating according to the ceequal 
standard this comes following a 
comprehensive assessment of the culture 
and demonstrable benefits achieved by 
em in the way it manages and delivers its 
sustainable strategy 
transport for london has now adopted 
ceequal as a performance measure 
for all four london highways alliance 
contract service providers over the 
next eight years each service provider 
will be ceequal audited four times with 
an expectation that they will improve 
overall scores on each occasion this 
is now expected to be rolled out across 
the industry during the ceequal audit 
em was able to demonstrate that its 
environmental initiatives were driving a 
measurable reduction in carbon reducing 
energy use reducing waste to landfill and 
reducing environmental risk and impact 
emissions focusing initially on emissions 
from our supply chain this will include 
establishing longrange targets for improving 
our position in the cdp league tables 
relevant to our core markets
waste
notwithstanding the environmental benefits 
reducing waste from our operations and 
those of our clients makes good business 
sense our clients expect us to be 
resourceful and current pressures on the 
public sector to address resource efficiency 
provide us with many opportunities to help 
them cut costs through identifying and 
eliminating waste within the projects and 
services we deliver
the majority of the physical waste mouchel 
generates is through the use of company 
offices and facilities typical waste streams 
include paper and card packaging waste 
it consumables batteries and electrical 
waste for all waste streams we maintain a 
comprehensive duty of care compliance log 
at each office location which ensures that 
our wastes are disposed of in accordance 
with the law and that a chain of custody 
exists for all waste materials 
we continue to monitor recycling efforts at 
our major office locations and in the past 
year have introduced new multimaterial 
systems which will enable us to more 
accurately measure and target recycling 
rates going forward
sustainability through design  
and delivery
mouchel considers sustainability an 
integral part of delivering its projects and 
services to its clients through developing 
a clear understanding of our stakeholders’ 
sustainability aspirations we seek to 
embed sustained economic social and 
environmental benefits in all our projects 
and services whether we are designing 
new schools that reduce carbon emissions 
and running costs or providing technology 
solutions that keep traffic flowing and reduce 
pollution on the network mouchel aims  
to add value to client assets and services  
by considering the longerterm impacts  
of their use
during the year we have introduced revised 
sustainability assessment tools at a project 
level to enable the earlier identification  
of opportunities and risks by our design  
and engineering teams over the coming  
12 months we will introduce further training 
and guidance for these groups – and our 
wider workforce – to empower our people  
to put sustainability at the heart of everything 
we do
business review
mouchel annual report and accounts 2013 53 governance
board of directors
new independent directors 
enhance the board 
and reflect a commitment  
to strong effective  
corporate governance
david shearer  
nonexecutive chairman 
david shearer joined the mouchel board 
on 9 january 2012 as chairman he 
is chairman of aberdeen new dawn 
investment trust plc cochairman of 
martin currie holdings limited senior 
independent director of stv group 
plc and a nonexecutive director of 
mithras investment trust plc david is an 
experienced chairman board level adviser 
and turnaround specialist a former senior 
partner and executive board member 
of deloitte llp and senior independent 
director of renold plc and superglass 
holdings plc he led the successful 
restructuring of crest nicholson plc in 
20089 as chairman and at city inn  
limited in 20101 1 as chief strategic adviser 
he was also involved as a nonexecutive 
director in the turnaround and refinancing  
of renold plc stv group plc and 
superglass holdings plc 
member of
• audit committee
• remuneration committee
grant rumbles  
group chief executive
grant joined the mouchel board as  
chief executive on 13 october 2011  
he was formerly chief executive at exova 
an international testing advisory and 
assurance services business where he 
worked from 2008 to 2011 previously 
he was with serco plc for 25 years where 
he held a range of senior management 
positions culminating in his last four years 
as the group chief operating officer he 
was also a board member of serco group 
plc grant has extensive experience and 
knowledge of partnering and delivering 
outsourced services within the uk and 
internationally to both public and private 
sector clients 
paul rayner  
group finance director 
 company secretary 
paul joined mouchel on 23 january 2013 as 
group finance director he was previously 
with chemring group plc for 18 years in 
various roles latterly as group finance 
director from 1999 to 2012 the business 
grew both organically and by acquisition 
over the period and trebled in size from 
2007 to 2010 prior to this paul worked with 
deloitte llp for 10 years he has extensive 
uk and international experience involving the 
usa australia and the middle east
mouchel annual report and accounts 2013 54  composition of the board
executive 2
nonexecutive 3
mike jeffries 
senior nonexecutive 
director
mike jeffries was appointed as non
executive director on 1 may 2013  
mike has spent the majority of his career 
with ws atkins plc and was the group chief 
executive and then chairman for 10 years 
mike is currently the chairman of priory 
group the mental healthcare provider 
civica and telecoms provider wyless plc 
he has previously been chairman of car 
parking company ncp  wembley national 
stadium ltd and vt group the shipbuilding 
and support services organisation acquired 
by babcock in 201 1 he was also the senior 
independent director on the board of the  
de la rue he is a governor of the rnli
member of
• audit committee
• remuneration committee chairman
ian duncan 
nonexecutive director
ian duncan was appointed as non
executive director on 31 january 2013 
he holds the same position with babcock 
international group plc and wandisco plc 
he was group finance director of royal 
mail holdings plc from 2006 until june 
2010 he is a chartered accountant and his 
former roles have included the position of 
corporate finance director at british nuclear 
fuels and chief financial officer and senior 
vice president at westinghouse electric 
company llc in pennsylvania usa
member of
• audit committee chairman
• remuneration committee
governance
mouchel annual report and accounts 2013 55 governance
strategic report for the year ended 30 september 2013
the directors present their 
strategic report on the group 
and the company for the year 
ended 30 september 2013
principal activities
mouchel is an international infrastructure 
and business services group that helps 
to transform and sustain essential public 
services we work in partnership with public 
and private sector clients to improve the day
today lives of millions of people 
we provide advisory design project delivery 
and managed services associated with 
infrastructure and business services  
we work in highways and transportation 
local government emergency services 
health education and utilities markets  
across the world 
we look for ways to do things more 
effectively and efficiently for local 
communities and we support communities 
by providing clean water and streets safer 
better roads costeffective sustainable 
energy landscapes where communities 
thrive and welldesigned schools where 
children can learn
business review
the chairman’s statement and chief 
executive review on pages 4 and 12 to 17  
provide a review of the group’s business 
development performance and position 
during and at the end of the financial years 
its strategy and likely future development 
principal risks and uncertainties 
details of principal risks and uncertainties  
are as set out pages 44 and 45
acquisitions
during the year mouchel made the 
following acquisitions
• 21 february 2013 – 50 of the 
share capital of its joint venture em 
highway services ltd known as 
enterprisemouchel ltd at the time  
of acquisition not already owned by  
the group details are set out in note  
31 of these financial statements
• 7 june 2013 – 100 of the share capital 
of procurement and operations consulting 
firm genica limited details are set out in 
note 31 of these financial statements and
• 27 september 2013 – 20 of the share 
capital of its joint venture 2020 liverpool 
limited following the expiration of the 
service contract between mouchel and 
liverpool city council not already owned 
by the group details are set out in note 
31 of these financial statements
health  safety
the board of directors is responsible for 
providing health and safety leadership the 
chief executive is the individual identified at 
board level with responsibility for health and 
safety monthly health and safety updates 
are given to the board
corporate responsibility
details of mouchel’s sustainability policy 
can be found on the company’s website 
mouchel maintains a strong commitment 
to sustainability and recognises it as a 
collective responsibility having an impact  
on the environment communities and clients 
who we serve we will continue to embrace 
our corporate responsibilities
approved by the board of directors on  
1 1 december 2013 
signed on behalf of the board
paul rayner
company secretary
mouchel annual report and accounts 2013 56  directors’ report for the year ended 30 september 2013
the directors present  
their annual report 
together with the audited 
financial statements  
of the group and the  
company for the year  
ended 30 september 2013
results and dividends
the results for the year can be found in  
the financial review on pages 40 to 43
the directors do not recommend the 
payment of a dividend
directors and their interests
biographical details of the directors who 
have served during the year and their 
share interests can be found in note 6 to 
the financial statements and are set out on 
pages 54 and 55
details of the remuneration of all directors 
who served during the financial year can be 
found in note 6 to the financial statements 
no director was materially interested in any 
contract of significance to the company’s 
business or the group during the year the 
group has maintained cover for its directors 
and officers and those of its subsidiary 
companies under a directors’ and officers’ 
liability insurance policy as permitted by  
the companies act 2006 the policy was  
in force throughout the financial year and  
at the date when the financial statements 
were signed
changes to the board
rod harris group finance director for 
mouchel from 201 12013 resigned on 25 
january 2013 paul rayner who succeeded 
rod harris joined mouchel as group 
finance director on 23 january and was 
appointed a director on 31 january 2013 
during the year two nonexecutive directors 
joined the mouchel board ian duncan  
on 31 january 2013 and mike jeffries  
on 1 may 2013 
share capital and shareholder rights
the authorised share capital of the 
company as at 30 september 2013  
is shown in note 23 of the notes to the 
financial statements on page 104 during  
the year the company’s share capital 
remained unchanged the company’s 
issued share capital at 30 september 2013 
consisted of 8000000 ordinary a shares  
of £00001p each and 2000000 ordinary  
b shares of £00001p each 
after the year end 89000 b shares of 
£00001p each were issued for details  
see note 33 to the financial statements
substantial shareholdings
name
number of shares held 
as at 11 december 
2013
 
interest
west register investments limited 3047131 3020
uberior equity limited 2686971 2663
barclays converted investments limited 1971331 1954
globe nominees limited 294567 292
governance
mouchel annual report and accounts 2013 57 governance
directors’ report for the year ended 30 september 2013 continued
financial instruments
the group’s financial risk management 
objectives can be found in note 1p of the 
accounting policies and note 19 of the notes 
to the financial statements 
corporate governance
a report on corporate governance can be 
found on pages 60 to 64 
employees 
at the year end the number of people 
employed by mouchel was 6509 2012 
7 423 while the average throughout 2013 
was 6648 2012 7 494 
the group’s policy is to provide an 
environment for all employees to fully 
develop their individual potential and thereby 
encourage their contribution to the success 
of mouchel we place considerable value on 
the involvement of our employees and have 
investors in people accreditation for all our 
uk offices and sites 
internal communication is a high priority 
within the group and employees are kept 
informed on matters affecting them as 
employees and on the group’s financial 
performance following the announcement 
of the group’s results staff presentations 
are made in various locations across the 
group by the senior management team 
the group uses its intranet to communicate 
job vacancies group policies and other 
company news
staff opinions are sought annually via a 
confidential staff survey the results of the 
survey are communicated to staff and 
are reviewed and acted upon to make 
improvements
the group has a diversity and equal 
opportunities policy and is committed 
to providing equal opportunities to all 
employees and job applicants irrespective  
of gender race age religion disability 
sexual orientation or parental obligation 
the group’s policy and practice in respect 
of disabled persons is to encourage the 
recruitment and subsequent training career 
development and promotion of disabled 
persons and to retain and retrain employees 
who become disabled on the basis of their 
aptitude and abilities we consider requests 
for individuals to work flexibly to meet their 
needs and the needs of the business 
some employees also have more formal 
arrangements in place such as parttime 
working and job sharing
learning and development is critical  
to the success of mouchel and we have 
a performance management system 
that provides a biannual opportunity 
for employees to discuss their progress 
and identify training needs we provide 
our employees with a wide range of 
resources to assist with their personal 
development which includes a mix  
of formal and online training
charitable and political donations
mouchel identifies a number of national 
charity days that it supports in line with its 
community involvement policy on these 
identified days the group matches the 
funding of the individual office location or 
team that raises the most amount of money 
during the year the group made total 
charitable donations of £14730 2012 £nil 
it is the group’s policy not to make 
political donations 
research and development 
during the year the group did not capitalise 
any research and development expenditure 
2012 £nil
policy on payment of suppliers
mrbl limited is a parent company and 
has no trade payables group companies 
aim to adhere to the payment terms agreed 
with suppliers payments are contingent on 
the supplier providing goods or services 
to the required standard and purchasing 
is sometimes coordinated between group 
undertakings as at 30 september 2013 the 
group had an average of 25 2012 29 days 
days purchases owed to trade payables 
this represents the ratio expressed in 
days between the amounts invoiced to the 
group by its suppliers in the year to the trade 
payables at yearend
mouchel annual report and accounts 2013 58  statement of directors’ responsibilities
the directors are responsible for preparing 
the annual report and the financial 
statements in accordance with applicable 
law and regulations 
company law requires the directors  
to prepare financial statements for each 
financial year under that law the directors 
have prepared the group financial 
statements in accordance with international 
financial reporting standards ifrss as 
adopted by the european union and the 
parent company financial statements in 
accordance with united kingdom generally 
accepted accounting practice united 
kingdom accounting standards and 
applicable law under company law the 
directors must not approve the financial 
statements unless they are satisfied that 
they give a true and fair view of the state of 
affairs of the group and the company and of 
the profit or loss of the group for that period 
in preparing these financial statements the 
directors are required to 
• select suitable accounting policies and 
then apply them consistently
• make judgements and accounting 
estimates that are reasonable and prudent
• state whether ifrss as adopted by 
the european union and applicable 
uk accounting standards have been 
followed subject to any material 
departures disclosed and explained in 
the group and parent company financial 
statements respectively
• prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
company will continue in business
the directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the company’s 
transactions and disclose with reasonable 
accuracy at any time the financial position 
of the company and enable them to ensure 
that the financial statements comply with 
the companies act 2006 they are also 
responsible for safeguarding the assets of 
the company and the group and hence for 
taking reasonable steps for the prevention 
and detection of fraud and  
other irregularities
the directors are responsible for the 
maintenance and integrity of the company’s 
website legislation in the united kingdom 
governing the preparation and dissemination 
of financial statements may differ from 
legislation in other jurisdictions 
directors’ responsibility statement
we confirm that to the best of our knowledge
• the financial statements prepared in 
accordance with the relevant financial 
reporting framework give a true and 
fair view of the assets liabilities financial 
position and profit or loss of the company 
and the undertakings included in the 
consolidation taken as a whole and
• the statement by the chairman and the 
chief executive which are referred to in 
the directors’ report include a fair review 
of the development and performance 
of the business and the position of the 
company and the undertakings included 
in the consolidation taken as a whole
provision of information to auditors
each of the directors at the date of approval 
of this report confirms that
• so far as the director is aware there is 
no relevant audit information of which the 
company’s auditors are unaware and 
• the director has taken all the steps that 
he ought to have taken as a director to 
make himself aware of any relevant audit 
information and to establish that the 
company’s auditors are aware of that 
information
this confirmation is given and should be 
interpreted in accordance with the provisions 
of section 418 of the companies act 2006
approved by the board of directors on  
1 1 december 2013 
signed on behalf of the board
paul rayner
company secretary
governance
mouchel annual report and accounts 2013 59 governance
statement on corporate governance
the board is committed to 
upholding the highest standards 
of corporate governance  
we take responsibility for 
approving the group’s long 
term goals and strategies  
and providing overall financial 
and organisational control  
we also ensure that the group’s 
businesses have appropriate and 
effective internal control and  
risk management systems 
the board reviews the longterm strategic 
plan for the group the current and future 
resource requirements for delivery of the 
plan and risks to the achievement of that 
plan 
the board
composition and operation of the 
board
the board comprises two executive 
directors and three nonexecutive directors 
including the chairman the board 
considers that the chairman and both 
of the other nonexecutive directors are 
independent in character and judgment  
the directors’ biographical details are set 
out on pages 54 and 55 
the board has a formal schedule of matters 
specifically reserved to it for consideration 
and approval including the group’s 
threeyear plan and operating budgets 
acquisitions disposals and major capital 
expenditure financing pensions health 
and safety strategy the group’s systems 
of financial control and risk management 
appointments to the board and policies 
relating to nonexecutive directors’ 
remuneration all directors take decisions 
objectively in the interests of the company 
the board delegates certain responsibilities 
to its executive management team ‘emt’ 
including implementation of the group’s 
strategies and policies as determined by 
the board monitoring of operational and 
financial results against budget allocation 
of resources across the group within the 
overall plan approved by the board capital 
expenditure within limits imposed by the 
board and developing and implementing 
risk management systems 
procedures are in place covering the 
content presentation and timely delivery 
of papers to the board for each board 
meeting to ensure that directors have 
sufficient information to make expedient and 
considered decisions in fulfilment of their 
fiduciary duties 
the company maintains directors and 
officers liability insurance in respect  
of legal action against its directors 
mouchel annual report and accounts 2013 60  meeting attendance
the board held 12 meetings during the year and the meeting attendance record is set out below
name
meetings 
eligible to
attend
1
meetings 
attended 
david shearer chairman 12 12
grant rumbles 12 12
paul rayner
2
9 9
ian duncan
3
9 9
mike jeffries
4
3 3
rod harris
5
3 2
1
 12 meetings held during the year 9 scheduled and 3 additional 
2
 appointed 31 january 2013 
3
 appointed 31 january 2013 
4
 appointed 1 may 2013 
5
 resigned 25 january 2013
the chairman
the company separates the roles of 
chairman and chief executive the division 
of responsibilities between the chairman 
and the chief executive and their respective 
job descriptions are set out in writing and 
agreed by the board
in addition to chairing the board the 
chairman is responsible for ensuring that 
the board is kept properly informed and is 
consulted on all decisions reserved to it 
nonexecutive directors
the nonexecutive directors perform an 
essential role in safeguarding shareholders’ 
interests they actively participate in the 
development of strategic objectives and 
monitor the performance of executive 
management in achieving these objectives 
in a constructively challenging manner 
where appropriate the nonexecutive 
directors also review financial performance 
and consider the integrity of the financial 
information produced by the group and 
whether the financial controls and risk 
management systems are robust they meet 
periodically with the management of the 
group’s operating companies in addition 
to participating in board meetings the 
nonexecutive directors are the members 
of the standing committees set up to deal 
with audit and the remuneration of executive 
directors and senior management 
during the year the chairman met regularly 
with the nonexecutive directors without the 
executive directors being present
board performance evaluation
the performance of the board and its 
effectiveness are subject to periodic  
review by the chairman the chairman 
and the nonexecutive directors consider 
the individual performance of the executive 
directors as part of the annual remuneration 
review 
executive management team
the current members of the emt are
grant rumbles chairman group chief executive 
paul rayner group finance director
ruth mundy group human resources director
craig apsey managing director – mouchel business services
keith jackson managing director – australasia
david virden managing director – mouchel infrastructure services
dave wright managing director – em highway services ltd
board committees
the board has two committees  
the audit committee and the  
remuneration committee
governance
mouchel annual report and accounts 2013 61 governance
audit committee
ian duncan chairman 
david shearer chairman until 31 january 2013
mike jeffries 
the committee monitors the integrity of 
the group’s financial statements and the 
effectiveness of the external audit process 
it is responsible for ensuring that an 
appropriate relationship between the group 
and the external auditors is maintained 
including reviewing nonaudit services and 
fees the committee keeps under review 
the effectiveness of the group’s internal 
controls and financial risk management 
systems and on an annual basis considers 
the effectiveness of the group’s internal audit 
function the committee reviews annually 
its terms of reference and its effectiveness 
and recommends to the board any changes 
required as the result of such review
the audit committee met four times during 
the year and the meeting attendance record 
is set out below
statement on corporate governance continued
during the year the committee operating 
under its terms of reference discharged its 
responsibilities by
• reviewing the group’s draft 2012 
financial statements published in 
february 2013 and 2013 interim results 
statement prior to board approval and 
reviewing the external auditors’ detailed 
reports thereon
• reviewing the appropriateness  
of the group’s accounting policies  
and reviewing various accounting 
matters raised by management and  
the external auditors in the context  
of financial disclosures
• reviewing the potential impact on the 
group’s financial statements of certain 
matters such as impairments of fixed 
asset values and the adoption of new 
accounting standards
• reviewing the external auditors’ plan 
for the 2013 year end audit including 
reviewing the key risks on the financial 
statements confirming the auditors’ 
independence and the proposed audit 
fee and approving the terms  
of engagement for the audit 
• receiving reports from the risk 
committee and reviewing the group’s  
risk register
• reviewing the group’s antibribery policies 
and procedures 
• overseeing the application of the 
group’s whistleblowing policy and 
procedures for employees 
• reviewing the work undertaken by  
the group’s internal audit function 
assessing the adequacy of the internal 
audit resource and recommending 
changes for increasing the scope  
of the internal audit activities
the group’s internal audit programme 
incorporates an annual rolling review of all 
businesses and focuses on both financial 
and nonfinancial controls and procedures 
the committee approves the annual internal 
audit plan and receives regular reports from 
its internal auditor 
to assess the effectiveness of the external 
auditors the committee reviewed
• the arrangements for ensuring the 
external auditors’ independence and 
objectivity
• the external auditors’ fulfilment of the 
agreed audit plan and any variations from 
the plan
• the robustness and perceptiveness of 
the auditors in their handling of the key 
accounting and audit judgements and
• the content of the external auditors’ 
reporting and internal control 
documentation
name
meetings eligible  
to attend
meetings  
attended 
ian duncan chairman
1
2 2
david shearer chairman until 31 january 2013 4 4
mike jeffries
2
1 1
1
 appointed 31 january 2013 
2
 appointed 1 may 2013
mouchel annual report and accounts 2013 62  remuneration committee
mike jeffries chairman 
david shearer chairman until 1 may 2013
ian duncan 
the remuneration committee operates 
under authority delegated to it by the board 
and under specific terms of reference which 
are reviewed annually as part of the group’s 
annual corporate governance review its key 
objectives are to
• determine and agree with the board 
the level and structure of remuneration 
pension arrangements service 
agreements termination payments and 
compensation commitments of the chief 
executive and the finance director and 
such other senior managers immediately 
below the executives
• ensure that the executive management 
are provided with appropriate incentive 
to encourage enhanced performance 
and are in a fair and responsible manner 
rewarded for their individual contributions 
to the success of the company and
• review annually the ongoing 
appropriateness and relevance of the 
remuneration policy and remuneration 
trends of competitor companies
the remuneration committee met three 
times during the year and the meeting 
attendance is set out below 
the group human resources director 
attended meetings by invitation as required
mike jeffries’ first remuneration committee 
was after the yearend
the remuneration committee has a 
rolling calendar of items within its remit for 
discussion during the year the committee 
operating under its terms of reference 
discharged its responsibilities by
• considering and recommending to the 
board the group’s remuneration policy for 
the executive directors and such other 
senior managers as it is designated to 
consider covering terms of employment 
basic salary performance bonus 
retirement benefits and other benefits 
and
• considering the terms of the management 
incentive plan
name
meetings eligible  
to attend
meetings  
attended 
mike jeffries chairman
1
0 0
david shearer chairman until 1 may 2013 3 3
ian duncan
2
3 3
1
 appointed 1 may 2013 
2
 appointed 31 january 2013
governance
mouchel annual report and accounts 2013 63 governance
financial reporting
the statement of directors’ responsibilities 
in respect of the financial statements and 
accounting records maintained by the 
company is set out on p59
internal control and risk management
the board has continued to review the 
effectiveness of the group’s systems 
of internal control including financial 
operational and compliance controls  
and risk management systems 
the board acknowledges its responsibility 
for the group’s systems of internal control 
and attaches considerable importance to 
these systems which are designed to meet 
the group’s particular needs and identify 
those risks to which it is exposed however 
the systems can only provide reasonable 
not absolute assurance against material 
misstatement loss or mismanagement  
of the group’s assets
in carrying out its review of the effectiveness 
of the group’s systems of internal control 
the board has taken into consideration 
the following key features of the group’s 
risk management systems and control 
procedures which operated during the year
• the board assesses the key risks 
associated with achievement of the 
group’s business objectives as part of the 
annual strategic planning process out of 
this process each business establishes 
a three year plan and annual budget 
which is approved by the board the 
performance of each business against 
budget and prior years is reviewed on 
a monthly basis at both operational 
level and by the board achievement of 
strategic business objectives and the 
associated risks are monitored by the 
board on an ongoing basis
• all businesses hold monthly operating 
meetings which are attended by the 
respective divisional managing directors 
with the chief executive and the finance 
director in attendance
• the sheq director coordinates and 
controls the activities of each business 
in relation to health and safety and 
environmental matters which are a  
key focus for the board the chief 
executive is the board member 
nominated with specific responsibility  
for health and safety
the group’s risk management committee 
meets on a quarterly basis all members of 
the emt serve on the risk management 
committee the committee reviews the key 
risks associated with each business and 
the risk control procedures implemented 
the risk management committee reports 
regularly to the audit committee and the 
board on the top ten risks from a group 
perspective and monitors the actions being 
taken to mitigate these
the board confirms that it has reviewed 
the effectiveness of the group’s systems of 
internal control and risk management which 
were in place during the financial year ended 
30 september 2013 the board will continue 
to take steps to embed internal control and 
risk management further into the operations 
of the group and to deal with any areas  
of improvement which come to the attention 
of management and the board
procedures to deal with directors’ 
conflicts of interest
all directors have a duty under the 
companies act 2006 the ‘2006 act’ to 
avoid a situation in which he can have a 
direct or indirect interest that conflicts or 
possibly may conflict with the interests  
of the company the company’s articles 
of association include provisions for 
dealing with directors’ conflicts of interest 
in accordance with the 2006 act the 
company has procedures in place to deal 
with situations where directors may have any 
such conflicts which require the board to
• consider each conflict situation separately 
on its particular facts
• consider the conflict situation in 
conjunction with the rest of their duties 
under the 2006 act
• keep records and board minutes as to 
authorisations granted by directors and 
the scope of any approvals given and
• regularly review conflict authorisation
going concern
the directors have acknowledged the latest 
guidance on going concern they have 
made appropriate enquiries and taken  
into account factors such as 
the group’s banking covenants were all  
met during the year and the expectation  
is that this will continue as a consequence 
the directors believe that the company  
is wellplaced to manage its risks 
the longterm nature of the group’s 
business taken together with the group’s 
forward order book provide a satisfactory 
level of confidence to the board in respect  
of trading in the year ahead
the directors have a reasonable expectation 
that the group has adequate resources  
to continue in operational existence for the 
foreseeable future thus they continue  
to adopt the going concern basis in 
preparing the financial statements
approved by the board of directors  
on 1 1 december 2013
paul rayner
company secretary
statement on corporate governance continued
mouchel annual report and accounts 2013 64  mrbl limited
financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 65 financial statements
statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law  
and regulations
company law requires the directors to prepare financial statements for each financial year under that law the directors have prepared the 
group financial statements in accordance with international financial reporting standards ifrss as adopted by the european union and 
the parent company financial statements in accordance with united kingdom generally accepted accounting practice united kingdom 
accounting standards and applicable law under company law the directors must not approve the financial statements unless they are 
satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for  
that period in preparing these financial statements the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and accounting estimates that are reasonable and prudent
• state whether ifrss as adopted by the european union and applicable uk accounting standards have been followed subject to any 
material departures disclosed and explained in the group and parent company financial statements respectively
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue  
in business
• the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that 
the financial statements comply with the companies act 2006 they are also responsible for safeguarding the assets of the company 
and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
• the directors are responsible for the maintenance and integrity of the company’s website legislation in the united kingdom governing 
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions
mouchel annual report and accounts 2013 66  financial statements
consolidated income statement
for the year ended 30 september 2013
note
underlying 
performance
year to 
30 september 
2013
£m
nonunderlying 
items 
year to 
30 september 
2013
£m
total
year to 
30 september 
2013
£m
underlying 
performance 
period 13 
august to 30 
september 2012 
restated
1

£m
nonunderlying 
items  
period 13 
august to 30 
september 2012 
restated
1

£m
total 
period 13 
august to 30 
september 2012 
restated
1

£m
revenue 2 5553  –  5553  499  –  499 
cost of sales 5020 – 5020 463 – 463
gross profit 533  –  533  36  –  36 
administrative 
expenses 3 252 42 294 25 882 907
operating 
profitloss 24 281 42 239  11 882 871
finance income 5 03  –  03  03  –  03 
finance costs 35 76 – 76 07 01 08
profitloss 
before tax 208 42 166  07 883 876
tax 7 17  10  27  –  –  – 
profitloss for 
the year 2012 
period 13 august 
to 30 september 
2012 225 32 193 07 883 876
earnings before 
interest tax 
depreciation 
and 
amortisation 
ebitda 4 370  06  376  18  –  18 
1
 see note 1a
financial statements
mouchel annual report and accounts 2013 67 financial statements
consolidated statement of comprehensive income
for the year ended 30 september 2013
note
year to 
30 september 
2013
£m
period 13 august 
to 30 september 
2012
restated
1

£m
profit for the year 2012 loss period 13 august to 30 september 2012 193 876
currency translation differences 25 06 04 
actuarial loss on pension scheme valuations 26 30 80 41
deferred tax on actuarial movement in pension scheme valuations 14 30 17  09 
other comprehensive loss 69 28
total comprehensive profit for the year 2012 loss period 13 august to 
30 september 2012 124 904
there is no tax effect for differences on exchange
1
 see note 1a
mouchel annual report and accounts 2013 68  consolidated balance sheet
as at 30 september 2013
note
2013
£m
2012
restated
1

£m
noncurrent assets
goodwill 9 329  242 
other intangible assets 10 473  470 
property plant and equipment 11 72  93 
deferred tax assets 14 180  155 
 1054  960 
current assets
trade and other receivables 15 1051  998 
cash and cash equivalents 19 29 357  401 
 1408  1399 
total assets 2462  2359 
equity
share capital 23 –  – 
share premium 24 –  – 
other reserves 25 02 04 
accumulated losses 26 778 908
total equity 780 904
current liabilities
borrowings 18 50  – 
trade and other payables 17 1344  127 1 
current tax liabilities 208  193 
derivative financial instruments 18 19 08  07 
provisions for liabilities and charges 22 66  141 
retirement benefit obligations 30 05  05 
 1681  1617 
noncurrent liabilities
borrowings 18 762  802 
trade and other payables 21 12  09 
derivative financial instruments 1819 –  23 
provisions for liabilities and charges 22 177  208 
deferred tax liabilities 14 85  87 
retirement benefit obligations 30 525  517 
 1561  1646 
total liabilities 3242  3263 
total equity and liabilities 2462  2359 
1
 see note 1a
the notes on pages 73 to 1 12 are an integral part of the financial statements
the financial statements on pages 67 to 1 12 were authorised for issue by the board of directors on 1 1 december 2013 and were signed  
on its behalf by
paul rayner
group finance director 
company number 8177998
financial statements
financial statements
mouchel annual report and accounts 2013 69 financial statements
consolidated cash flow statement
for the year ended 30 september 2013
note
year to 30 
september 
2013
£m
period 13 
august to 30 
september 
2012 
restated
1

£m
cash generated from operations before working capital movements 28 387  20 
changes in working capital
– decreaseincrease in trade and other receivables including unbilled revenue 100 92
– decreaseincrease in trade and other payables 19 10 
– decrease in provisions 7 5 01
underlying cash generated used in operating activities 393 63
overseas taxation paid 03 – 
cash paid in respect of restructuring and onerous leases 107 10
contributions to defined benefit pension schemes 94 06
net cash generatedused in operating activities 189 79
cash flows from investing activities
purchase of assets and liabilities of the mouchel group of companies 31 – 07
net cash acquired on acquisition of the mouchel group of companies 31 –  445 
acquisition of subsidiaries net of cash acquired 31 117 – 
acquisition transaction costs 12 – 
purchase of property plant and equipment 22 – 
purchase of intangibles – software and assets in the course of construction 16 – 
net cash usedgenerated from investing activities 167 438 
cash flows from financing activities
loan facility drawn down net of loan issue costs 215  1 10 
loan facility repayments 219 – 
financial restructuring fees  – 64
finance costs paid 65 04
interest received 03  – 
net cash usedgenerated from financing activities 66 42 
net decreaseincrease in cash and cash equivalents 44 401 
cash and cash equivalents at beginning of period 401  – 
cash and cash equivalents at 30 september 29 357  401 
1
 see note 1a
mouchel annual report and accounts 2013 70  consolidated statement of changes in equity
for the year ended 30 september 2013
share 
capital
share 
premium
other 
reserves
accumulated 
losses total
note £m £m £m £m £m
balance at 13 august 2012 – – – – –
comprehensive incomeloss
loss for the period restated
1
 – –  – 876 876
other comprehensive incomeloss
actuarial loss on pension scheme 
valuations 30 –  –  – 41 41
deferred tax on pension scheme 
valuations 1430 –  –  –  09  09 
currency translation differences 25 –  –  04  –  04 
total other comprehensive income
loss –  –  04 32 28
total comprehensive incomeloss 
restated –  –  04 908 904
balance at 30 september 2012 
restated –  –  04 908 904
balance at 1 october 2012 –  –  04 908 904
comprehensive incomeloss
profit for the year –  –  –  193  193 
other comprehensive incomeloss
actuarial loss on pension scheme 
valuations 30 –  –  – 80 80
deferred tax on pension scheme 
valuations 1430 –  –  –  17  17 
currency translation differences 25 –  – 06 – 06
total other comprehensive loss –  – 06 63 69
total comprehensive incomeloss –  – 06 130  124 
balance at 30 september 2013 –  – 02 778 780
1
 see note 1a
financial statements
financial statements
mouchel annual report and accounts 2013 71 financial statements
independent auditors’ report to the members of mrbl limited
we have audited the group financial statements of mrbl limited ‘the group’ for the year ended 30 september 2013 which comprise 
the consolidated income statement the consolidated statement of comprehensive income the consolidated balance sheet the 
consolidated cash flow statement the consolidated statement of changes in equity and the related notes the financial reporting 
framework that has been applied in their preparation is applicable law and international financial reporting standards ifrss as adopted 
by the european union
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement set out on page 66 the directors are responsible for the preparation  
of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion 
on the financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards 
require us to comply with the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 3  
of part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume responsibility for 
any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed  
by our prior consent in writing
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of 
whether the accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately 
disclosed the reasonableness of significant accounting estimates made by the directors and the overall presentation of the financial 
statements in addition we read all the financial and nonfinancial information in the annual report to identify material inconsistencies  
with the audited financial statements and to identify any information that is apparently materially incorrect based on or materially 
inconsistent with the knowledge acquired by us in the course of performing the audit if we become aware of any apparent material 
misstatements or inconsistencies we consider the implications for our report
opinion
in our opinion the group financial statements
• give a true and fair view of the state of the group’s affairs as at 30 september 2013 and of its profit and cash flows for the year 
then ended
• have been properly prepared in accordance with ifrss as adopted by the european union and
• have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and directors’ report for the financial year for which the group financial 
statements are prepared is consistent with the group financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our opinion
• certain disclosures of directors’ remuneration specified by law are not made or
• we have not received all the information and explanations we require for our audit
other matters
we have reported separately on the parent company financial statements of mrbl limited for the year ended 30 september 2013
julian jenkins senior statutory auditor
for and on behalf of pricewaterhousecoopers llp 
chartered accountants and statutory auditors 
london
1 1 december 2013
financial statements
mouchel annual report and accounts 2013 72  notes to the consolidated financial statements
for the year ended 30 september 2013
1 accounting policies
the principal accounting policies adopted in the preparation of these financial statements are set out below these policies have been 
consistently applied for the year presented
a basis of preparation
these financial statements have been prepared in accordance with international financial reporting standards ifrss as adopted by the 
european union international financial reporting standards interpretations committee ifric interpretations and with those parts of the 
companies act 2006 applicable to companies reporting under ifrs the financial statements have been prepared under the historical cost 
convention except for the following items interest rate hedges and retirement benefit obligations are fair valued a summary of the more 
important group accounting policies is set out below
the financial statements for mrbl limited a private limited company incorporated in england  wales and its subsidiaries have been 
prepared on a going concern basis in determining that this is an appropriate basis for preparing the financial statements the directors have 
had regard to the factors affecting the future development performance and financial position of the group including its cash flows liquidity 
position borrowing facilities and the risks and uncertainties relating to its business activities
as discussed in note 18 mrbl limited amended the group’s banking facilities as part of the acquisition of enterprisemouchel limited 
after the yearend on 1 1 december 2013 mrbl limited renegotiated the group’s banking facilities see note 33 for further detail as part 
of the amendment and renegotiation careful consideration has been given to the budgeting and ongoing cash management within the 
business which have been subject to extensive internal and external review notwithstanding the current economic climate the directors  
are therefore satisfied that sufficient headroom exists within the banking facilities
after considering these factors the directors have a reasonable expectation that the company and the group have adequate resources  
to continue in operational existence for the foreseeable future accordingly they continue to adopt the going concern basis in preparing  
the group’s annual financial statements
the preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and 
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts  
of revenues and expenses during the reporting period although these estimates are based on management’s best knowledge of the 
amount event or actions actual results ultimately may differ from those estimates
the prior period comparatives have been restated to reallocate £45m from underlying administrative expenses to underlying cost of sales 
as this was deemed to reflect a more appropriate presentation of these costs and to ensure a comparable treatment with the presentation 
for the year ended 30 september 2013 the prior period balance sheet and income statement have also been restated to reflect the impact 
of adjustments made to the provisional fair values as part of the mrbl limited acquisition see note 31 for further details the prior period 
cash flow was restated to reallocate £10m from decrease in provisions to cash paid in respect of restructuring and onerous leases as this 
was deemed to reflect a consistent presentation with prior period adjustments throughout the financial statements
b changes in accounting policies
no new accounting standards having a material impact on the group were mandatory for the financial year ended 30 september 2013
c basis of consolidation
the consolidated financial statements incorporate the financial statements of the company and entities controlled by the company  
its subsidiaries control is achieved where the company has the power to govern the financial and operating policies of an entity so  
as to obtain benefits from its activities
the results of subsidiaries acquired or disposed of during the period are included in the consolidated income statement from the effective 
date of acquisition or up to the effective date of disposal as appropriate
on acquisition adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used 
by other members of the group
all intragroup transactions balances income and expenses are eliminated on consolidation
d business combinations
the acquisition of subsidiaries is accounted for using the acquisition method of accounting the cost of the acquisition is measured at the 
aggregate of the fair values at the date control passes of assets given less liabilities incurred or assumed and equity instruments issued 
by the group in exchange for control of the acquiree the fair value of the consideration transferred also includes contingent consideration 
arrangements at fair value any costs directly attributable to the business combination are written off to the income statement the 
acquiree’s identifiable assets liabilities and contingent liabilities that meet the conditions for recognition under ifrs3 revised ‘business 
combinations’ are recognised at their fair values at the acquisition date when the initial accounting for a business combination is 
incomplete at the end of a reporting period provisional amounts are used
during the measurement period the provisional amounts are retrospectively adjusted and additional assets and liabilities may be 
recognised to reflect new information obtained about the facts and circumstances that existed at the acquisition date which would  
have affected the measurement of the amounts recognised at that date had they been known the measurement period does not  
exceed twelve months from the date of acquisition where the group acquires control of another business the identifiable assets acquired 
the liabilities assumed and any noncontrolling interests in the acquired business shall be recognised separately from goodwill this process 
involves management making an assessment of the fair value of these items
financial statements
financial statements
mouchel annual report and accounts 2013 73 notes to the consolidated financial statements
for the year ended 30 september 2013
1 accounting policies continued
d business combinations continued
management judgement is particularly involved in the recognition and measurement of the following items intellectual property – this may 
include patents licences trademarks and similar rights contingencies – such as legal and environmental matters contingent consideration 
arrangements and the recoverability of any accumulated tax losses previously incurred by the acquired company in all cases 
management makes an assessment based on the underlying economic substance of the items concerned and only on the contractual 
terms in order to fairly present these items
e interests in joint ventures
a joint venture is a contractual arrangement whereby the group and one or more other parties undertake an economic activity that 
is subject to joint control joint control is when the strategic financial and operating policy decisions relating to the activity require the 
unanimous consent of the parties sharing control
the group conducts its joint venture arrangements through both jointly controlled entities and jointly controlled operations the group’s 
interests in jointly controlled operations are reported using proportional consolidation the group’s share of the assets liabilities income and 
expenses are combined with the equivalent items in the consolidated financial statements on a linebyline basis the group recognises the 
assets it controls and the liabilities it incurs in respect of its jointly controlled operations
f goodwill
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the net fair value of the 
identifiable assets and liabilities of the subsidiary recognised at the date of acquisition goodwill is initially recognised as an asset at cost  
and is subsequently measured at cost less any accumulated impairment losses
on disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal
g foreign currencies
the individual financial statements of each group entity are presented in the currency of the primary economic environment in which the 
entity operates its functional currency for the purpose of the consolidated financial statements the results and financial position of each 
entity are expressed in pounds sterling which is the functional currency of the company and the presentation currency for the consolidated 
financial statements
i individual entity financial statements
transactions in currencies other than the entity’s functional currency foreign currencies are recorded at the rates of exchange prevailing 
on the dates of the transactions at each balance sheet date monetary items denominated in foreign currencies are retranslated at the 
rates prevailing at the balance sheet date nonmonetary items carried at fair value that are measured in terms of historical cost in a foreign 
currency are not retranslated
exchange differences arising on the settlement or retranslation of monetary items are included in the income statement exchange 
differences arising on the retranslation of nonmonetary items carried at fair value are included in the income statement for the period 
except for differences arising on the retranslation of nonmonetary items in respect of which gains and losses are recognised directly in 
equity for such nonmonetary items any exchange component of that gain or loss is also recognised directly in equity
ii consolidated financial statements
the assets and liabilities of the group’s foreign operations are expressed in pounds sterling using exchange rates prevailing at the balance 
sheet date income and expense items are translated at the average exchange rates for the period unless exchange rates fluctuated 
significantly during that period in which case the exchange rates at the dates of the transactions are used
any exchange differences arising are recognised in other comprehensive income and transferred to the group’s translation reserve  
such translation differences are recognised in the income statement in the period in which the foreign operation is disposed of
h revenue recognition
revenue is recognised in accordance with ias18 ‘revenue’ and represents the fair value of services provided in the case of time charge 
work and the value of services provided as a proportion of the total value of the contract in the case of fixed fee contracts revenue is  
net of value added tax
revenue recognition on outsourcing contracts is determined by reference to the proportion of the annual service delivered to date where 
cash flows on such contracts vary year on year but the underlying annual service remains the same revenue is recognised evenly over  
the length of the contract with overunder amounts represented in deferred or accrued income where the costs of obligations in relation  
to the nonrenewal or termination of a contract are higher in the final period of the contract a proportion of revenue is deferred each period 
to meet these anticipated costs
provision is made in full for estimated losses if the costs of fulfilling the contract exceed the recoverable amount revenue is only recognised 
to the extent that it is probable that it will be recoverable where the outcome cannot be measured reliably revenue is recognised to the 
extent of costs incurred to date where it is probable that costs will be recoverable
where revenue that has been recognised is found to not be recoverable due to a dispute with the client these amounts are charged  
against the revenue recognised where nonrecovery is as a result of inability of a client to meet its obligations these amounts are charged 
to administrative expenses
financial statements
mouchel annual report and accounts 2013 74  notes to the consolidated financial statements
for the year ended 30 september 2013
1 accounting policies continued
h revenue recognition continued
as described above revenue represents the fair value of services provided as a proportion of the total value of the contract unbilled 
revenue is the difference between the revenue recognised and the amounts actually invoiced to customers where invoicing exceeds  
the amount of revenue recognised these amounts are included in deferred income
consumables are stated at cost when consumables are used a charge is made to cost of sales
i precontract costs
the group accounts for precontract costs on both time charge work and service contracts in accordance with ias1 1 ’construction 
contracts’ as ias18 ‘revenue’ does not provide specific guidance for these costs
the markets in which the group operates are characterised by formal procurement tendering processes the board considers that the 
date at which the contract and resulting revenue flow becomes virtually certain is the date at which the group is formally announced  
as the preferred bidder
costs incurred before it becomes virtually certain that the contract will be awarded are charged directly to the income statement  
costs incurred after that point are recognised as an asset in the balance sheet and charged to the income statement over the duration  
of the contract
j employee benefits
the group operates several occupational pension schemes of both the defined contribution and defined benefit type
i defined contribution pension schemes
contributions to the group’s defined contribution schemes are recognised as an employee benefit expense when they fall due  
employer pension contributions in respect of employees who transferred under tupe to mouchel but who remain members of their 
respective councils’ defined benefit pension scheme are treated as being made to defined contribution schemes where under the terms  
of the contract the defined benefit liability effectively remains with the relevant council
prepaid contributions are recognised as an asset to the extent that they result in either a cash refund or a reduction in future payments
ii defined benefit pension schemes
the liability recognised in the balance sheet for the group’s defined benefit pension schemes is the present value of the defined benefit 
obligation at the balance sheet date as adjusted for unrecognised past service cost less the fair value of scheme assets the defined 
benefit obligation is calculated by independent actuaries using the projected unit credit method and by discounting the estimated future 
cash flows using interest rates on highquality corporate bonds that have terms to maturity approximating the terms of the related pension 
liability any asset resulting from this calculation is limited to unrecognised past service costs plus the present value of available refunds and 
reductions in future contributions to the scheme
the pension expense for the group’s defined benefit schemes is recognised as follows
within operating profit
current service cost – representing the increase in the present value of the defined benefit obligation resulting from employee service  
in the current period
past service cost – representing the increase in the present value of the defined benefit obligation resulting from employee service  
in prior periods which arises from changes made to the benefits under the scheme in the current period to the extent that the changes  
to benefits vest immediately past service costs are recognised immediately otherwise they are recognised on a straightline basis over  
the vesting period
gains and losses arising on settlements and curtailments – where the item that gave rise to the settlement or curtailment is recognised 
within operating profit
within finance costs
interest cost on the liabilities of the scheme – calculated by reference to the scheme liabilities and discount rate at the beginning of the 
period and allowing for changes during the period
expected return on the assets of the scheme – calculated by reference to the scheme assets and longterm expected rate of return  
at the beginning of the period and allowing for changes during the period
within the statement of comprehensive income
actuarial gains and losses arising on the assets and liabilities of the scheme
when a curtailment reducing future obligations as a result of a material reduction in the scheme membership or a reduction in future 
entitlement occurs the obligation and related plan assets are remeasured using current actuarial assumptions and the resultant gain  
or loss is recognised in the income statement during the period in which the curtailment occurs
financial statements
financial statements
mouchel annual report and accounts 2013 75 1 accounting policies continued
j employee benefits continued
iii sharebased payments
the group issues equitysettled sharebased payments to certain employees equitysettled sharebased payments are measured at fair value 
excluding the effect of nonmarketbased vesting conditions at the date of grant the fair value determined at the grant date of the equitysettled 
sharebased payments is expensed on a straightline basis over the vesting period based on the group’s estimate of the shares that will eventually 
vest at each balance sheet date before vesting the cumulative expense is calculated representing the extent to which the vesting period has 
expired and management’s best estimate of the achievement or otherwise of nonmarket conditions and hence the number of equity instruments 
that will ultimately vest the movement in the cumulative expense since the previous balance sheet is recognised in the income statement
k taxation
taxation in the income statement represents the sum of the tax currently payable and deferred tax on items charged or credited to the 
income statement
the tax currently payable is based on taxable profit for the period taxable profit differs from net profit as reported in the income statement 
because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never 
taxable or deductible the group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted  
by the balance sheet date
deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the 
corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method deferred 
tax liabilities are generally recognised for all temporary differences and deferred tax assets are recognised to the extent that it is probable 
that taxable profits will be available against which deductible temporary differences can be utilised
such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition other than  
in a business combination of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and interests in joint ventures 
except where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not 
reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable 
that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised deferred 
tax is charged or credited to the income statement except when it relates to items charged or credited directly to equity in which case the 
deferred tax is also reflected in equity examples of items charged to equity are gains or losses in relation to pension scheme valuations and 
actual amounts received in respect of relief obtained in granting options to employees under share incentive schemes
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities 
and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax assets and 
liabilities on a net basis
l intangible assets
i computer software costs
the cost or valuation of assets acquired or created to fulfil customer contracts less their estimated residual value is written down in equal 
instalments over the life of the contract to which the assets relate
acquired computer software licences and software development costs are capitalised and amortised over their estimated useful lives  
of between three and eight years
the group’s corporate information systems are treated as an intangible asset costs included are those directly attributable to the design 
construction and testing of new systems including major enhancements and internally generated costs from the point of inception to the 
point of satisfactory completion where the probable future economic benefits arising from the investment can be assessed with reasonable 
certainty at the time the costs are incurred maintenance and minor modifications are expensed in the income statement as incurred  
the corporate information systems are amortised on a straightline basis over their estimated useful economic life of eight years
ii customer relationships
customer relationships are initially measured as the present value of cash flows attributable to the relationship after deduction of appropriate 
contributory asset charges the relationship is amortised over its expected useful life on a straightline basis
iii assets in the course of construction
capital software projects which are incomplete at the balance sheet date are included within this category of intangible assets until the 
projects are commissioned and transferred to computer software costs assets in the course of construction are not amortised
iv brand
corporate brand names acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their 
value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the 
asset will flow to the group these are amortised over their expected useful life of 20 years on a straight line basis
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 76  1 accounting policies continued
m property plant and equipment
assets are carried at cost less accumulated depreciation and accumulated impairment losses
subsequent costs are capitalised only when it is probable that they will result in future economic benefits flowing to the group  
and when they can be measured reliably all other repairs and maintenance expenditure is charged to the income statement  
in the year in which it is incurred
depreciation on assets is calculated using the straightline method to write off their cost less their residual value over their estimated  
useful lives as follows
leasehold improvements – over the expected term of the lease
plant and office equipment – three to 10 years
vehicles – three to five years
the cost or valuation of assets acquired or created to fulfil customer contracts less their estimated residual value is written down in equal 
instalments over the life of the contract to which the assets relate cost includes the original purchase price of the asset and the costs 
attributable to bringing the asset to its working condition for its intended use
assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets residual values  
and estimated useful lives are reviewed and adjusted if appropriate at least at each financial yearend
an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its 
estimated recoverable amount
gains and losses arising on disposals are determined by comparing net sales proceeds with carrying amounts and are recognised  
in the income statement in the period of the disposal
n impairment of noncurrent assets
i goodwill
for the purpose of impairment testing goodwill is allocated to the cashgenerating units expected to benefit from the combination 
cashgenerating units to which goodwill has been allocated are tested for impairment annually or more frequently when there is an 
indication that the unit may be impaired
if the recoverable amount of the cashgenerating unit is less than the carrying amount of the unit the impairment loss is allocated first to 
reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying 
amount of each asset in the unit
an impairment loss recognised for goodwill is not reversed in a subsequent period
ii other noncurrent assets including investments
at each balance sheet date the group reviews the carrying amount of its noncurrent assets to determine whether there is any indication 
that those assets have suffered an impairment loss
if any such indication exists the recoverable amount of the asset is estimated in order to determine the extent if any of the impairment 
loss where it is not possible to estimate the recoverable amount of an individual asset the group estimates the recoverable amount of the 
cashgenerating unit to which the asset belongs
a reversal of an impairment loss for noncurrent assets other than goodwill is recognised immediately in the income statement to the extent 
that the original impairment loss was recognised in the income statement
iii assets in the course of construction
as stated in note 1liii incomplete capital projects are included within other intangible assets they are not amortised once the project  
is complete and transferred to software it will be amortised in accordance with note 1li
o leases
leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership  
to the lessee all other leases are classified as operating leases
i finance leases
assets held under finance leases are recognised as assets of the group at their fair value at the inception of the lease or if lower at the 
present value of the minimum lease payments the corresponding liability to the lessor is included in the balance sheet as a finance lease 
obligation lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate 
of interest on the remaining balance of the liability finance charges are charged to the income statement
ii operating leases
rentals payable under operating leases are charged to the income statement on a straightline basis over the term of the relevant lease 
benefits received and receivable as an incentive to enter into an operating lease are also spread on a straightline basis over the lease term
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 77 1 accounting policies continued
o leases continued
a provision is made for all unavoidable costs arising on an onerous contract where such costs exceed the economic benefits expected  
to be generated over the remaining life any such value ascribed is disclosed within provisions for liabilities and charges
p financial instruments
financial assets and liabilities are recognised on the group’s balance sheet when the group becomes a party to the contractual provisions 
of the instrument
i trade receivables and unbilled revenue
trade receivables and unbilled revenue including contract retentions are initially measured at fair value do not carry any interest and are 
reduced by appropriate impairment provisions for estimated irrecoverable amounts they are subsequently measured at amortised cost
where recovery is anticipated as being greater than one year the receivable is discounted the unwinding of any such discount is reflected 
in finance income
a provision for impairment of trade receivables and unbilled revenue is established when there is objective evidence that the group will 
not be able to collect all amounts due according to the original terms of the receivables significant financial difficulties of the customer 
probability that the customer will enter bankruptcy or financial reorganisation and default may be considered indicators that the trade 
receivable may be impaired delinquency of payments is an indicator that is considered when assessing whether the asset needs to 
be impaired
the amount of the impairment provision is the difference between the asset’s carrying amount and the present value of estimated future 
cash flows discounted at the original effective interest rate the carrying amount of the asset is reduced through the use of an impairment 
provisions account and the amount of the loss is recognised in the income statement within administrative expenses when a trade 
receivable is uncollectible it is written off against the impairment provisions account for trade receivables
if in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring 
after the impairment was recognised the reversal of the previously recognised impairment is recognised in the income statement
ii cash and cash equivalents
these comprise cash in hand and on demand deposits and other shortterm highly liquid investments with original maturities of three 
months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value
iii trade and other payables
trade and other payables are not interestbearing and are initially measured at their fair value they are subsequently measured at 
amortised cost
iv borrowings
bank overdrafts and interestbearing loans are initially measured at fair value and obligations under finance leases are dealt with  
in accordance with the group’s policy on leases note 1o after initial recognition loans and borrowings are subsequently measured  
at amortised cost taking into account issue costs
borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for a period  
of at least 12 months after the end of the reporting period
v financial liabilities and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into
vi derivative financial instruments
the derivative instruments used by the group which are used solely for hedging purposes ie to offset interest rate risks comprise interest 
rate swaps such derivative instruments are used to alter the risk profile of an existing underlying exposure of the group in line with the 
group’s risk management policies
derivatives are initially recognised at fair value on the date the contract is entered into and are subsequently remeasured at their fair value
derivatives are classified as current or noncurrent based on the timing of cash flows the group does not use hedge accounting as 
allowable under ifrs and accounts for the difference in the fair value of its financial instruments immediately through the income statement
vii offsetting financial instruments
financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset 
the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously
q provisions
provisions are recognised when the group has a present obligation as a result of a past event and it is probable that the group will be 
required to settle that obligation provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation 
at the balance sheet date and are discounted to present value where the effect is material using a pretax rate that reflects current market 
assessments of the time value of money and the risks specific to the obligation the increase in provision due to the passage of time  
is recognised in finance costs
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 78  1 accounting policies continued
q provisions continued
restructuring provisions are recognised when the group has committed to a course of restructuring activity that will result in nonunderlying 
costs to complete
insuranceclaims provisions reflect management’s view of the likely outcome of insurance and other legal claims made against the group  
in connection with operational activities
dilapidation provisions are recognised to provide for the expected costs of meeting dilapidationreinstatement requirements for 
properties leased by the group when they are exited and these are provided for at the point of lease inception and included within 
leasehold improvements
onerous contract provisions are recognised where the unavoidable costs relating principally to property lease contracts is not expected  
to be fully recovered by the economic benefits expected to be derived from using those properties
provisions for termination benefits are recognised when the group has a detailed formal plan to terminate the employment of current 
employees without the possibility of withdrawal termination benefits are payable when employment is terminated by the group before 
the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits in the case of an offer 
made to encourage voluntary redundancy the termination benefits are measured based on the number of employees expected to accept 
the offer
r noncurrent assets held for sale and discontinued operations
noncurrent assets classified as held for sale and discontinued operations are measured at the lower of the carrying amount and fair value 
less costs to sell the assets are not depreciated
noncurrent assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction 
rather than through continuing use this condition is regarded as having been met only when the sale is highly probable and the asset  
or disposal group is available for immediate sale in its present condition
the directors must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year  
from the date of classification
s segmental reporting
segment reporting requires a ‘management approach’ under which segment information is presented on the same basis as that used 
for internal reporting purposes operating segments are reported in a manner consistent with the internal reporting provided to the chief 
operating decisionmaker the chief operating decisionmaker has been identified as the executive directors a geographical segment  
is engaged in providing services within a particular world location
the two operating segments used by management to review the business are defined in note 2 segmental analysis these segments form 
the basis for reporting the group’s primary segment information as they are the main segments used for internal reporting purposes
t investments in subsidiaries
investments in subsidiaries are stated at cost less accumulated impairment losses
u financial risk management
the group has a limited number of overseas operations significant cash balances and a revolving credit facility which expose the group  
to the effects of changes in foreign currency exchange rates changes in interest rates and credit risk the group manage these risks within 
a defined set of policies and procedures laid down by the board
the board has identified that the group is exposed to foreign exchange risk interest rate risk credit risk liquidity risk and price risk  
in varying degrees
the group’s policy for managing these risks is set out in note 19
the group hedges against interest rate risk on bank borrowings
v research and development
expenditure on research is recognised as an expense in the period in which it is incurred development costs are expensed in the period  
in which the costs are incurred unless the criteria for capitalisation are met
w dividends
dividends are recorded in the group’s consolidated financial statements in the period in which they are approved by the 
group’s shareholders
x nonunderlying items
as permitted by ias1 ‘presentation and disclosure’ certain items are presented separately in the income statement as nonunderlying 
items where in the judgement of the directors they need to be disclosed separately by virtue of their nature size or incidence in order  
to obtain a clear and consistent presentation of the group’s underlying business performance
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 79 1 accounting policies continued
x nonunderlying items continued
examples of material and nonrecurring items which may give rise to disclosure as nonunderlying items include gains or losses on the 
disposal of businesses costs of restructuring and reorganisation of existing businesses integration of newly acquired businesses asset 
impairments and acquisition transaction costs they also include reclass or provisions in respect of such items
amortisation of acquired intangible assets is also treated as a nonunderlying item so that the underlying profit of the group can be measured 
from period to period underlying operating profit is one of the key measures used by the board to monitor the group’s performance
y reclass or previously established provisions
the group holds a number of provisions for various expenses including recoverability of unbilled revenue trade receivables restructuring 
costs onerous contract litigation matters and other commercial contractural matters by their nature the above items involve the 
application of management judgement to the specific circumstance of each item
z borrowing costs
borrowing costs at the rate incurred are added to the cost of those assets that necessarily take a substantial period of time to get ready  
for their intended use or sale until such time as the assets are substantially ready for their intended use or sale
all other borrowing costs are recognised as an expense in the period in which they are incurred
aa key accounting estimates
in the process of applying the group’s accounting policies which are described above management has made the following judgements 
which have the most significant effect on the amounts recognised in the financial statements
i retirement benefit obligations
the calculation of retirement benefit obligations is dependent on material key assumptions including discount rates future returns on assets 
and future contribution rates see note 30 the value of retirement benefit obligations at the balance sheet date is £530m 2012 £522m 
the sensitivity associated with assumptions is disclosed in note 30b
ii goodwill
determining whether goodwill is impaired requires an estimation of the value in use of the cashgenerating units to which goodwill has been 
allocated the value in use calculation involves an estimation of the future growth rates and future cash flows of cashgenerating units and 
also the selection of appropriate discount rates which involves judgement to calculate present values see note 9 the carrying value of 
goodwill at the balance sheet date is £329m 2012 restated see note 31 £242m
iii revenue recognition
the group’s revenue recognition policy is stated in note 1h in some cases judgement is required to determine the appropriate proportion 
of the value delivered on the contract and the extent to which fees will be recoverable the recoverability of fees in the cases where the fee 
has become the subject of a claim against the customer involves management judgement to be applied to the specific circumstances of 
each individual case
iv intangible assets
as described in note 1l the group recognises certain intangible assets on acquisition judgements in respect of useful lives discount rates 
and valuation methods affect the carrying value and amortisation charges in respect of these assets these judgements are shown in note 10
v deferred tax and income taxes
management has estimated the likely value of deferred tax assets in respect of trading losses there are many transactions and calculations 
for which the ultimate tax determination is uncertain the group recognises liabilities and assets for anticipated tax audit issues based on 
estimates of whether additional taxes will be due see note 7 and note 14
the group has open tax matters with a number of revenue authorities the group believes that it has made adequate provision for the 
liabilities likely to arise from open assessments where open matters exist the ultimate liability for such matters may vary from the amounts 
provided and is dependent on the outcome of negotiations with the relevant tax authorities or if necessary litigation
ab new ifrss not applied
standards interpretations and amendments to existing standards that have been published as mandatory for later accounting periods  
but are not yet effective and have not been adopted early by the group are
new standards
ifrs9 financial instruments classification and measurement – effective for accounting periods beginning on or after 1 january 2015
ifrs10 consolidated financial statements – effective for accounting periods beginning on or after 1 january 2014
ifrs1 1 joint arrangements – effective for accounting periods beginning on or after 1 january 2014 which will impact the accounts for  
the period ended 30 september 2015 given the group has a number of joint ventures which are currently proportionately consolidated  
it is possible that the standard will have a material impact on the group’s reporting as this will no longer be permitted see note 12
ifrs12 disclosure of interests in other entities – effective for accounting periods beginning on or after 1 january 2013
ifrs13 fair value measurement – effective for accounting periods beginning on or after 1 january 2013
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 80  1 accounting policies continued
ab new ifrss not applied continued
amendments to existing standards
revised ias19 employee benefits amended standard resulting from the postemployment benefits and termination benefits 
projects – effective accounting periods beginning on or after 1 january 2013
revised ias27 separate financial statements as amended in 201 1 – effective for accounting periods beginning on or after 1 january 2013
revised ias28 investments in associates and joint ventures as amended in 201 1 – effective for accounting periods beginning on or after 
1 january 2013
revised ifrs1 first time adoption of ifrss first time adoption on government grants – effective for accounting periods beginning on or after  
1 january 2013
revised ifrs7 financial instruments disclosures on offsetting financial assets and financial liabilities – effective for accounting periods 
beginning on or after 1 january 2013
revised ias 32 financial instruments disclosures on offsetting financial assets and financial liabilities – effective for accounting periods 
beginning on or after 1 january 2014
2 segmental analysis
business segments
the group’s operations are organised and managed separately according to the nature of products and services provided infrastructure 
services comprises asset management engineering design and operation management mouchel business services encompasses 
the group’s partnerships with various uk local authorities to provide a range of front and back end public services corporate comprises 
the central cost of running the group the financing of the group’s activities is undertaken centrally and consequently net financing costs 
cannot be analysed segmentally
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 81 2 segmental analysis continued
business segments continued
analysis of operating profitloss by business segment is as follows
year to 30 september 2013
infrastructure
 services
£m
mouchel
 business
 services
£m
corporate
£m
total
£m
revenue 3879 1674 – 5553
earnings before interest tax depreciation amortisation and  
nonunderlying items 311 114 55 370
depreciation 21 23 – 44
loss on disposal of fixed assets – 22 – 22
amortisation of software 07 16 – 23
earnings before interest tax and nonunderlying items 283 53 55 281
acquisition transaction costs 12 – – 12
release of onerous contract provisions 33 05 – 38
release of restructuring provisions 05 16 – 21
costs relating to restructuring activities 20 14 07 41
amortisation of intangible assets arising from business combinations 30 18 – 48
operating profitloss for the year 259 42 62 239
assets by segment
goodwill and other intangibles 694 108 – 802
trade and other receivables 612 207 – 819
other segment assets 192 112 – 304
unallocated assets
– deferred tax assets 180
– cash 357
– other unallocated assets –
total assets 2462
liabilities by segment
trade payables – current 105 80 – 185
other segment liabilities 851 320 – 1171
unallocated liabilities
– borrowings 812
– current tax liabilities 208
– deferred tax liabilities 85
– retirement benefit obligations 530
– derivative financial instruments 08
– other provisions and other unallocated liabilities 243
total liabilities 3242
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 82  2 segmental analysis continued
business segments continued
infrastructure
services
£m
mouchel
business
services
£m
total  
group
£m
other segment items
capital expenditure intangible assets and property plant and equipment  
including acquisition of subsidiaries 160 32 192
 
the financing of group’s activities is undertaken centrally and consequently net financing costs cannot be analysed segmentally
period 13 august to 30 september 2012
infrastructure
services
£m
mouchel 
business
services
£m
corporate
£m
total
restated
12

£m
revenue 313 186 – 499
earnings before interest tax depreciation and amortisation 22 15 19 18
depreciation 03 01 – 04
amortisation of software 01 02 – 03
earnings before interest tax and nonunderlying items 18 12 19 11
impairment of goodwill on acquisition – – 879 879
amortisation of intangible assets arising from business combinations 02 01 – 03
operating profitloss for the period 16 11 898 871
assets by segment
goodwill and other intangibles
2
592 120 – 712
trade and other receivables 512 270 – 782
other segment assets 177 129 – 306
unallocated assets
– deferred tax assets 155
– cash 401
– other unallocated assets 03
total assets 2359
liabilities by segment
trade payables – current 104 66 – 170
other segment liabilities 723 457 – 1180
unallocated liabilities
– borrowings 802
– current tax liabilities 193
– deferred tax liabilities 87
– retirement benefit obligations 522
– derivative financial instruments 30
– other provisions and other unallocated liabilities 279
total liabilities 3263
1
 £100m of intangible asset reallocated from corporate to mouchel infrastructure services
2
 see note 1a
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 83 2 segmental analysis continued
business segments continued
infrastructure 
services
£m
mouchel 
business 
services
£m
group
£m
other segment items
capital expenditure intangible assets and property plant and equipment 05 02 07
geographical analysis
the table below represents revenue by geographical origin the analysis by geographical destination is not materially different to that  
by origin and the carrying amount of noncurrent assets
1
 split according to the geographical location of those assets
revenue noncurrent assets
1
2013
£m
2012
£m
2013
£m
2012
restated
2

£m
united kingdom 4906 441 869 801
middle east 159 15 05 04
australasia 480 41 – –
ireland and other overseas 08 02 – –
at september 5553 499 874 805
1
 noncurrent assets exclude financial instruments deferred tax assets and retirement benefit assets where applicable
2
 see note 1a
major customers
within the infrastructure services segment revenue of £1892m 2012 £94m was derived from a single external customer
the group does not consider various government agencies whether local or national to be a single customer under joint control  
as whilst many such agencies are subject to the uk government’s comprehensive spending review csr each agency negotiates  
and manages its supplier contracts individually
3 nonunderlying items
infrastructure
services
£m
mouchel
business
services
£m
corporate
£m
2013
£m
2012
restated
12

£m
amortisation of intangible assets arising from  
business combinations 30 18 – 48 03
impairment of goodwill – – – – 879
charge to income statement on acquired  
overhedged derivatives
2
– – – – 01
acquisition transaction costs 12 – – 12 –
release of onerous contract provisions 33 05 – 38 –
release of restructuring provisions 05 16 – 21 –
costs relating to restructuring activities 20 14 07 41 –
total nonunderlying items 24 11 07 42 883
1
 see note 1a
2
  mrbl limited acquired a number of interest rate swaps a proportion of these swaps were not justified given the new level of group borrowing and  
the interest relating to these over hedged derivatives has been charged to nonunderlying items
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 84  3 nonunderlying items continued 
management use underlying profit to measure and manage the financial performance of the group on a daytoday basis underlying  
profit excludes material income and charges considered to be oneoff or nonrecurring in nature such as the acquisition costs of half  
of enterprisemouchel limited underlying profit also excludes the amortisation of intangible assets arising from business combinations  
the group presents these items as nonunderlying items in a separate column in the income statement so that the underlying and 
statutory performance can be seen clearly
further detail on the impairment of goodwill made in the prior period is set out in note 31
the tax effect of the nonunderlying items is £1m 2012 £nil in the consolidated income statement and relates to amortisation  
of intangibles on business combinations
4 operating profitloss – analysis of costs by nature
operating profitloss is stated after charging
2013
£m
2012
£m
staff costs note 6 2096 205
depreciation of property plant and equipment note 1 1 44 04
loss on disposal of property plant and equipment and software 22 –
amortisation of software and other acquired intangibles note 10 23 03
amortisation of intangible assets arising from business combinations notes 3 and 10 48 03
acquisition transaction costs 12 –
operating lease payments on property vehicles plant and equipment 84 10
profitloss on foreign exchange 01 02
 
reconciliation of operating loss to earnings before interest tax depreciation and amortisation ebitda
2013
£m
2012
£m
operating profitloss 239 871
impairment of goodwill note 3 – 879
amortisation of intangible assets arising from business combinations note 3 48 03
depreciation of property plant and equipment note 1 1 44 04
loss on disposal of property plant and equipment and software 22 –
amortisation of software and other acquired intangibles note 10 23 03
ebitda 376 18
 
auditor’s remuneration
2013
£m
2012
£m
audit services
fees payable to the company’s auditor and its associates for the audit of the parent company and 
consolidated financial statements
1
03 03
fees payable to the company’s auditor and its associates for other services
– the audit of the company’s subsidiaries
2
02 –
– tax advisor services
2
01 –
– tax compliance services
2
01 03
07 06
1
 the fees payable in respect of the statutory audit of the company were £20000 2012 £20000
2
 these services relate to the year to 30 september 2013 2012 14 month period to 30 september 2012
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 85 5 finance incomecosts
2013
£m
2012
£m
net interest receivable on retirement benefit obligations note 30 – 03
other interest receivable 03 –
finance income 03 03
interest expense
– interest payable on revolving credit facility and term loans 32 04
– amounts payable on interest rate hedges 18 02
– net interest payable on retirement benefit obligations note 30 20 –
– interest payable on bonds 06 01
finance costs excluding nonunderlying items 76 07
nonunderlying finance costs on acquired overhedged derivatives note 3 – 01
finance costs 76 08
net finance costs 73 05
 
6 employees and directors
staff costs during the year were as follows
2013
£m
2012
£m
wages and salaries 1852 184
social security costs 160 15
other pension costs note 30 125 12
2137 211
 
staff costs in 2013 include £4 1m 2012 £06m relating to redundancy and other exit costs which have been charged as restructuring  
costs as part of nonunderlying items see note 3
staff costs include temporary staff
the average number of people including executive directors and temporary staff employed during the year 2012 period 13 august  
to 30 september 2012 was as follows
2013
infrastructure
services
number
mouchel
business
services
number
corporate
functions
number
total
number
total staff 3695 2919 34 6648
2012
infrastructure
services
restated
1

number
mouchel
business
services
restated
1

number
corporate
functions
restated
1

number
total
number
total staff 3974 3484 36 7494
1
  restated on a basis consistent with the september 2013 basis the impact of this has been to reduce corporate function by 486 with the balance being reallocated 
to infrastructure services and mouchel business services
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 86  6 employees and directors continued
directors’ remuneration
the remuneration in respect of the directors was as follows
2013
£m
2012
£m
aggregate emoluments 13 01
company pension contributions 01 –
compensation for loss of office 02 –
16 01
 
highest paid director
2013
£m
2012
£m
emoluments in respect of qualifying services 07 01
company pension contributions – –
07 01
 
the company pension contributions to a defined contribution scheme relate to one director only 2012 one
directors’ interests
the beneficial interests of the directors in the share capital of the company were as follows
2013
ordinary b
shares
number
2012
ordinary b
shares
number
i duncan 40000 –
rh harris – 300000
m jeffries 40000 –
p rayner 300000 –
g rumbles 969000 960000
djb shearer 200000 200000
1549000 1460000
 
7 tax
a analysis of tax charge for the year 2012 period 13 august to 30 september 2012
2013
£m
2012
£m
current tax on profits – –
total current tax – –
change in corporation tax rate 04 –
deferred tax recognised in year 31 –
total deferred tax credit 27 –
total tax credit 27 –
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 87 7 tax continued
b factors affecting the tax charge for the year
the tax charge for the year is different to the standard rate of corporation tax in the uk of 235 2012 24 the differences  
are explained below
2013
£m
2012
restated
1

£m
profitloss before tax 166 876
profitloss multiplied by the standard rate of corporation tax in the uk of 235 2012 24 39 210
effects of
– losses not previously recognised 11 –
– permanent differences 11 212
– losses recognised in yearperiod 70 02
– change in corporation tax rate 04 –
tax charge for the year 27 –
1 
see note 1a
c tax on items charged to other comprehensive income
the income credited directly to equity during the period is as follows
2013
£m
2012
£m
movement in pension scheme valuations 17 09
deferred tax on items credited to other comprehensive income 17 09
 
d net movement in deferred tax
2013
£m
2012
£m
deferred tax on items credited to equity 17 09
deferred tax arising on acquisitions 16 –
total deferred tax credit 01 09
 
unrecognised deferred tax assets and liabilities are disclosed in note 14
e future changes
the standard rate of corporation tax in the uk changed from 24 to 23 with effect from 1 april 2013 accordingly the group’s profits for 
this accounting period are taxed at a rate of 235 on 2 july 2013 the uk government passed the 2013 finance bill which will reduce the 
main rate of corporation tax to 21 from 1 april 2014 with a further reduction to 20 from 1 april 2015 although these reductions were not 
substantively enacted at the balance sheet date
deferred tax has been recognised at 21 2012 23 reflecting the rate that was enacted in the finance act 2012
8 dividends
the directors have not proposed any dividends for the year 2012 £nil
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 88  9 goodwill
restated
1

£m
cost
at incorporation on 13 august 2012 –
arising on acquisition note 31 – restated
1
 1121
at 30 september 2012 – restated 1121
additions note 31 167
disposals note 31 80
at 30 september 2013 1208
accumulated impairment
at incorporation on 13 august 2012 –
impairment in the period 13 august to 30 september 2012 note 31 879
at 30 september 2013 and 2012 879
net book value
at 30 september 2013 329
at 30 september 2012 – restated 242
1
 see note 1a
goodwill is monitored by management at the operating segment level goodwill has been allocated to the infrastructure services is 
operating segment except for £07m 2012 £nil of goodwill allocated to mouchel business services mbs operating segment for genica 
and after customer relationships have been recognised in both segments
during the year the goodwill was tested for impairment in accordance with ias 36 the recoverable amount for all the cashgenerating 
units ‘cgus’ in the is operating segment has been measured based on a value in use calculation derived from board approved three year 
budgeted cash flows and extrapolated thereafter based on an estimated growth rate of 2 2012 2 a pretax discount rate of 135 
2012 158 was used in the pretax value in use calculation for the cashgenerating units within the is operating segment
further information regarding movements to goodwill in the year and the prior period impairment can be found in note 31
sensitivities
the group’s impairment reviews are sensitive to changes in the key assumptions described above based on the group’s sensitivity 
analysis a reasonably possible change in a single assumption will not cause an impairment loss in any of the group’s cgus
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 89 10 other intangible assets
2013
assets in the
course of
construction
£m
customer
relationships
£m
brand
£m
software
and
other
intangibles
£m
total
£m
cost
at 1 october 2012 07 280 100 89 476
additions 15 – – 03 18
acquisition of subsidiary undertakings – 145 – – 145
disposals – 73 – 07 80
transferred to property plant and equipment 03 – – 06 09
at 30 september 2013 19 352 100 79 550
accumulated amortisation
at 1 october 2012 – 03 – 03 06
charge for the year – 43 05 23 71
at 30 september 2013 – 46 05 26 77
net book value
at 30 september 2013 19 306 95 53 473
2012
assets in the
course of
construction
£m
customer
relationships
£m
brand
£m
software 
and
other
intangibles
£m
total
restated
1

£m
cost
at incorporation on 13 august 2012 – – – – –
arising on acquisition – restated
1
 05 280 100 84 469
additions 02 – – 05 07
at 30 september 2012 – restated
1
 07 280 100 89 476
accumulated amortisation
at incorporation on 13 august 2012 – – – – –
charge for the period – 03 – 03 06
at 30 september 2012 – 03 – 03 06
net book value
at 30 september 2012 – restated
1
 07 277 100 86 470
1
 see note 1a
assets in the course of construction are not amortised in accordance with note 1liii of the financial statements
customer relationships acquired are the estimated fair value of customer relationships which are in part contractual represented by the 
value of the acquired order book and in part noncontractual represented by the risk adjusted value of future orders expected to arise  
from the relationships customer relationships are being amortised on a straight line basis over a period of between three and 10 years
the mouchel brand acquired was initially valued at £10m and is being amortised over 20 years
software costs are amortised over their estimated useful lives of between three and eight years all amortisation charges in the year have 
been charged through administrative expenses
please refer to note 18 regarding intangible assets that are pledged as security for liabilities note 31 gives details of the reduction of £27m 
to the provisional fair values at 25 august 2012 attributed to software and other intangibles arising on acquisition these provisional values 
were finalised in the current accounting period
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 90  11 property plant and equipment
2013
leasehold
improvements
£m
plant and 
office
equipment
£m
vehicles
£m
total
£m
cost
at 1 october 2012 24 71 02 97
additions 02 19 01 22
acquisition of subsidiary undertakings 13 – – 13
disposals 09 18 – 27
transfers from other intangible assets – 09 – 09
at 30 september 2013 30 81 03 114
accumulated depreciation
at 1 october 2012 01 03 – 04
charge for the year 16 27 01 44
disposals 03 03 – 06
at 30 september 2013 14 27 01 42
net book value
at 30 september 2013 16 54 02 72
2012
leasehold
improvements
£m
plant and
office
equipment
£m
vehicles
£m
total
£m
cost
at incorporation on 13 august 2012 – – – –
arising on acquisition 24 71 02 97
at 30 september 2012 24 71 02 97
accumulated depreciation
at incorporation on 13 august 2012 – – – –
charge for the period 01 03 – 04
at 30 september 2012 01 03 – 04
net book value
at 30 september 2012 23 68 02 93
 
none of these assets are held under finance leases
please refer to note 18 regarding assets that are pledged as security for liabilities
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 91 12 investments
subsidiaries
the principal subsidiaries in which the group had an interest at 30 september 2013 their country of incorporation and registration  
and ownership of their ordinary share capital are listed below
group
proportion of
sharers held 
country of
registrationincorporation
mouchel limited
1
100 england and wales
mouchel business services limited
1
100 england and wales
mouchel management consulting limited
1
100 england and wales
mouchel rail limited
1
100 england and wales
mouchel holdings limited
12
100 england and wales
mouchel finance and treasury holdings limited 100 england and wales
mouchel finance limited
1
100 england and wales
mouchel dormant holdings limited 100 england and wales
em highway services limited formerly enterprisemouchel limited
1
100 england and wales
2020 liverpool limited
1
100 england and wales
mouchel ireland limited
1
100 republic of ireland
mouchel insurance limited 100 guernsey
mouchel international jersey limited
1
100 jersey
mouchel international limited 100 hong kong
1
 held indirectly by mrbl limited
2
 158 held directly
all the trading subsidiaries have the same principal activity as the group except for mouchel holdings limited and mouchel dormant 
holdings limited which are holding companies mouchel finance and treasury holdings limited and mouchel finance limited which  
are internal and external financing companies and mouchel insurance limited which is a captive insurance company
all subsidiaries are included within the consolidated results of the group
joint ventures
the group has interests in the following joint ventures
incorporated joint ventures
name
country of
registrationincorporation
equity
proportion of
joint interest
held 
voting
rights
2020 knowsley limited england and wales 801 50
hackney schools for the future limited england and wales 40 40
mouchel babcock education services limited england and wales 50 50
mouchel babcock education investments limited england and wales 50 50
network information services limited england and wales 50 50
the impact partnership rochdale borough limited england and wales 801 50
the unity partnership limited england and wales 67 67
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 92  12 investments continued
joint ventures continued
unincorporated joint ventures
name
country of
operation
equity proportion 
of joint interest
held 
voting
rights
downermouchel australia 40 50
holleran mouchel hm great britain 50 50
scotland transerv great britain 30 50
mouchel fairhurst great britain 50 50
westminster transerv great britain 20 50
kmi great britain 75 25
amey mouchel great britain 25 50
peekmouchel great britain 50 50
 
both incorporated and unincorporated joint ventures are accounted for in accordance with the policy detailed in note 1e 2020 knowsley 
limited hackney schools for the future limited mouchel babcock education services limited mouchel babcock education investments 
limited and the unity partnership limited have a 31 march yearend network information services limited has a 31 july yearend  
the impact partnership rochdale borough limited has a 30 september yearend where joint venture entities do not have  
a 30 september yearend management accounts for the period to 30 september are used for consolidation purposes
in relation to the group’s interests in jointly controlled entities the assets liabilities income and expenses recognised in the year 
2012 period 13 august to 30 september 2012 are shown below
2013
£m
2012
£m
noncurrent assets 27 36
current assets 254 607
total assets 281 643
current liabilities 238 592
noncurrent liabilities 17 02
total liabilities 255 594
2013
£m
2012
£m
revenue 1440 206
expenses 1368 201
profit before tax 72 05
tax
1
15 –
share of posttax results from jointly controlled entities 57 05
1
 tax charges offset by available losses held in group
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 93 13 capital commitments
2013
£m
2012
£m
mrbl limited’s share of joint venture contracts placed for future capital expenditure gross £nil 
2012 gross £17m – 06
 
14 deferred tax
2013
deferred tax assets
retirement 
benefit
obligations
£m
losses
£m
total
£m
at 1 october 2012 120 35 155
change in tax rate 10 03 13
actuarial loss on pension scheme valuations 17 – 17
contribution during the year 17 – 17
amounts recognised during the year – 70 70
amounts utilised during the year – 32 32
at 30 september 2013 110 70 180
deferred tax liabilities
intangible
assets
£m
total
£m
at 1 october 2012 87 87
change in tax rate 08 08
amortisation of intangibles 10 10
acquisition of subsidiary undertakings 16 16
at 30 september 2013 85 85
2012
deferred tax assets
retirement 
benefit
obligations
£m
losses and
provisions
£m
total
£m
at incorporation on 13 august 2012 – – –
arising on acquisition 113 33 146
actuarial loss on pension scheme valuations 09 – 09
losses utilised in period – 05 05
losses carried forward – 07 07
special contributions to retirement benefit schemes 02 – 02
at 30 september 2012 120 35 155
deferred tax liabilities
intangible
assets
£m
total
£m
at incorporation on 13 august 2012 – –
arising on acquisition 87 87
at 30 september 2012 87 87
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 94  14 deferred tax continued
the gross movements on the deferred income tax accruals is as follows
2013
£m
2012
£m
as at 1 october13 august 68 –
income statement note 7 27 –
tax chargecredit relating to components of other comprehensive income 17 09
acquisition of subsidiaries 16 59
at 30 september 96 68
 
deferred tax assets have been recognised as the directors believe that there will be sufficient future profits within the relevant subsidiary 
financial statements for the assets to be recovered
management estimate that £17m 2012 £3 1m of the group’s deferred tax assets and £1m 2012 £05m of the group’s deferred tax 
liabilities will unwind within one year with the remainder unwinding in more than one year
unrecognised deferred tax assets in relation to trading losses total £194m 2012 £39 1m in addition there are unrecognised deferred  
tax assets in respect of nontrading losses and capital allowances of £17 2m 2012 £246m these unrecognised deferred tax assets  
have no expiry date
15 trade and other receivables
gross
2013
£m
impairment
provision
2013
£m
net
2013
£m
gross
2012
£m
impairment
provision
2012
restated
1

£m
net
2012
restated
1

£m
trade receivables 376 62 314 466 93 373
unbilled revenue 565 60 505 519 110 409
other receivables 141 – 141 119 – 119
prepayments and accrued income 91 – 91 97 – 97
1173 122 1051 1201 203 998
 
as at 30 september 2013 trade receivables net of provisions of £120m 2012 £95m were past due but not impaired the ageing  
analysis of these trade receivables is as follows
£m £m
up to three months 50 90
over three months 70 05
120 95
 
as at 30 september 2013 trade receivables and unbilled revenue of £122m 2012 £203m have been impaired so as to reduce the value  
of contract receivables to the amounts the group believes it should be able to collect the ageing of these receivables is as follows
2013
£m
2012
restated
1

£m
up to three months 15 02
over three months 107 201
122 203
1
 see note 1a
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 95 15 trade and other receivables continued
the carrying amount of the group’s trade and other receivables are denominated in the following currencies
2013
£m
2012
restated
1

£m
pound sterling 969 881
emirati dirham 47 82
australian dollar 35 35
1051 998
 
movements on the group provision for impairment of trade receivables and unbilled revenue are as follows
2013
£m
2012
restated
1

£m
at 1 october 201213 august 2012 203 –
arising on acquisition – 206
provision utilised during the year 47 –
wip recovery from previous year 45 –
charge in the year 28 –
reclassification 17 –
foreign exchange retranslation difference – 03
122 203
 
no amounts of collateral are held as security
the creation and release of provisions for impaired receivables have been included in administrative expenses in the income statement 
impairment provisions are utilised when there is no expectation of cash recovery
the other classes within trade and other receivables do not contain impaired assets
1
 see note 1a
16 bank overdrafts
the group has no overdraft facilities 2012 £nil
17 trade and other payables – current
2013
£m
2012
restated
1

£m
trade payables 185 170
social security and other taxes 78 103
other payables 125 202
accrued expenses 784 541
deferred income and customer advances 172 255
1344 1271
1
 see note 1a
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 96  18 borrowings
on 19 february 2013 the group amended its facilities to provide an additional facility ‘facility c’ of £215m this was provided to partially fund 
the purchase by the group of 50 of the share capital of enterprisemouchel limited not previously owned by mrbl limited £215m was 
drawn down against this facility to partly finance the purchase and was completely repaid before the end of september 2013 at 30 september 
2013 the group had credit facilities totalling £1000m with the royal bank of scotland plc lloyds bank plc and barclays bank plc and their 
subsidiary companies of the £1000m £400m was in the form of revolving credit facilities which mature on 31 july 2016 £600m is in the 
form of a term loan of which £50m will be repaid on 31 july 2014 a further £50m on 31 july 2015 and the balance on 31 july 2016 the term 
loan will also be prepaid by 50 of the excess cash flow if any arising in the group during any twelve month period except for the twelve 
month period ending 30 september 2013 when the excess cash flow if any shall be placed in a separate bank account to be drawn by the 
group only if an independent firm of accountants certify that the funds must be made available to the group to enable it to remain liquid no 
cash was placed in a separate bank account at 30 september 2013
also drawn against the facility were bonds and guarantees as detailed in note 32
under this facility the group is required to meet financial covenants as would be usual for this type of facility and these are tested on  
a quarterly basis
there is a continuing obligation to ensure that the aggregate gross assets and ebitda of the guarantors note 32 are at least 85 of the 
group‘s subsidiaries excluding joint ventures at all times finally there are cleandown requirements of the revolving credit facility rcf 
which limit the group’s maximum borrowings under the rcf to £08m and £nil for 10 consecutive days between february and september 
2014 and every six months thereafter to maturity of the facility respectively
the group has complied with all the covenants during the year to 30 september 2013 2012 complied with covenants
the group’s two key financial covenants which are tested quarterly relate to the ratio between underlying consolidated earnings before 
interest tax depreciation and amortisation ‘consolidated ebitda’ to net debt and ‘consolidated ebitda’ to finance costs the group 
complied with both these covenants throughout the year and the position at the yearend is detailed below
covenant ratio 2013
maximum allowed ratio of net debt to consolidated ebitda 45
actual ratio of net debt to consolidated ebitda 20
minimum allowed ratio of consolidated ebitda to finance costs 25
actual ratio of consolidated ebitda to finance costs 41
 
there were no maximum or minimum allowed ratios in the covenants for 30 september 2012
there are £02m 2012 nil fees payable on these facilities per annum
there are restrictions in the banking facilities which prevent dividends being paid until the banking facilities have been unconditionally and 
irrevocably repaid in full
the term loan and the revolving credit facility are secured against fixed and floating charges over the assets of the group
loans are repayable as follows
2013
£m
2012
£m
obligations due within one year 50 –
obligations due between one and two years 50 50
obligations due between two and five years 712 752
total borrowings 812 802
deduct cash and cash equivalents note 29 357 401
net bank borrowings 455 401
 
the interest margin over libor on all facilities is fixed at 45 in addition for facility c alone a further charge of payment in kind ‘pik’ 
interest of 45 was accrued and added to the loan amount at the end of each quarter the pik interest increased to 15 after 30 june 
2013 until repaid and again this was accrued and added to the loan amount at the end of each quarter
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 97 18 borrowings continued
the group has entered into interest rate swaps to partially hedge against adverse movements in shortterm interest rates on the term loan 
and revolving credit facility that are drawn to finance these loans under the terms of these interest rate swaps the group are required to pay 
an average of 324 until the swaps mature in march 2014 receiving floating libor rate the nominal amount was £638m until 1 august 
2013 falling to £600m at that time until march 2014 at 30 september 2013 the total fair value of interest rate hedge derivatives was  
a liability of £08m 2012 £30m the whole movement in the fair value is recorded in the income statement
on 1 1 december 2013 the facilities were amended – see note 33
19 financial risk management including details of financial assets and liabilities
the group is exposed to risks arising from variations in interest rates foreign exchange rates credit and liquidity those risks relating  
to foreign exchange and credit given the nature of the customers are relatively low with the provisions recorded in note 15 mainly arising 
from specific customers in the middle east from previous years and amounts being disputed by the customers the risk relating to liquidity 
is dependent upon the group performing within its banking covenants and banking facilities as set out in note 18 the risks relating to 
variations in interest rates arise from longterm sterling borrowings at variable rates group policy is to hedge a proportion of the drawn 
revolving credit facility the group has not undertaken hedging or complex financial instruments to mitigate risk other than interest rate risk
the financial assets and liabilities of the group comprise bank loan facilities internal cash resources and trade receivables and payables 
arising from trading activities the group’s policy is to manage the assets and liabilities centrally to provide both the working capital and  
the investment funds necessary for ongoing operations and future development
the majority of uk projects and contracts are in sterling and otherwise are in the currencies in which the majority of the costs are 
denominated the group’s principal overseas subsidiaries have arranged working capital facilities in their local currency and it is unusual 
for them to contract in currencies other than their own functional currency consideration is given to hedging against possible currency 
movements where appropriate it is the group’s policy not to trade in derivatives
in accordance with ias 39 financial instruments recognition and measurement the group has reviewed all contracts for embedded 
derivatives that are required to be separately accounted for none were identified as part of the review
classification of financial assets and liabilities
2013
loans and 
receivables
£m
held at 
fair value 
through 
profit and 
loss
£m
liabilities at 
amortised 
cost
£m
total
£m
financial assets
trade receivables and unbilled revenue 819 – – 819
cash and cash equivalents 357 – – 357
1176 – – 1176
financial liabilities
trade and other payables – – 1172 1172
bank borrowings 812 – – 812
interest rate hedge derivatives – 08 – 08
812 08 1172 1992
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 98  19 financial risk management including details of financial assets and liabilities continued
classification of financial assets and liabilities continued
2012 restated
loans and 
receivables 
restated
£m
held at 
fair value 
through 
profit and 
loss
£m
liabilities at 
amortised 
cost 
£m
total 
restated
£m
financial assets
trade receivables and unbilled revenue 782 – – 782
cash and cash equivalents 401 – – 401
1183 – – 1183
financial liabilities
trade and other payables – – 1016 1016
bank borrowings 802 – – 802
interest rate hedge derivatives – 30 – 30
802 30 1016 1848
 
fair value measurements
ifrs 7 requires enhanced disclosures about fair value measurements of financial instruments through the use of a threelevel fair value 
hierarchy that prioritises the valuation techniques used in fair value calculations
the levels can be broadly described as follows
level 1 – use of unadjusted quoted prices in active markets for identical assets or liabilities
level 2 – use of observable inputs other than quoted prices included within level 1 such as quoted prices for similar assets or liabilities  
in active markets and
level 3 – use of inputs not based on observable market data but reflecting management’s own assumptions about pricing the asset 
or liability
classification of financial instruments
the group’s financial instruments measured at fair value are confined to the interest swaps described in note 18 these are valued by 
determining the expected cash flows arising under those swaps this is done by reference to the fixed rate for the payment leg of the  
swap and the forward libor rates for the floating leg of the swap the net of these two figures at each payment date is then discounted  
to a present value using the zero coupon yield curve the sum of the present value of both legs is the fair value of the interest rate swap 
they are classified as level 2 financial instruments
there has been an immaterial charge recognised in the income statement reflecting the change in fair value of the interest rate swap over 
the year 
the fair value of current borrowings equates to their carrying amount as the impact of discounting is not significant
interest rate risk
the group’s exposure to the risk of changes in market interest rates relates primarily to the group’s longterm debt obligations with floating 
interest rates
the group’s policy is to manage its interest cost using a mix of fixed and variable rate debts to manage this the group enters into interest 
rate swaps in which the group agrees to exchange at specified intervals the difference between fixed and variable rate interest amounts 
calculated by reference to an agreed upon notional principal amount these swaps are measured at fair value through profit and loss  
in accordance with accounting policy 1pvi
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 99 19 financial risk management including details of financial assets and liabilities continued
interest rate risk continued
the interest rate profile of the financial assets and liabilities of the group as at the yearend shows payable amounts as follows
2013
within
1 year
£m
between 
12 years
£m
between 
23 years
£m
between 
34 years
£m
total
£m
floating rate
– bank borrowings 50 50 712 – 812
– cash in hand 357 – – – 357
fixed rate
– interest rate hedges 08 – – – 08
2012
within
1 year
£m
between
12 years
£m
between
23 years
£m
between
34 years
£m
total
£m
floating rate
– bank borrowings – 50 50 702 802
– cash in hand 401 – – – 401
fixed rate
– interest rate hedges 07 23 – – 30
 
the following table demonstrates the sensitivity to a change in interest rates with all other variables held constant of the group’s profit 
before tax through the impact on floating rate borrowings there is no impact on the group’s equity
increase 
decrease 
in basis 
points

effect 
on profit 
before tax
£m
effect on 
equity
£m
year ended 30 september 2013  025  02 –
increase 
decrease in 
basis points

effect on 
profit before 
tax
£m
effect on 
equity
£m
period ended 30 september 2012  025  02 –
 
foreign exchange risk
the group has operations where transactions are denominated in foreign currencies in these operations the working capital facilities are 
maintained in local currency with funds being remitted back to the uk to minimise exposure to foreign exchange risk the group does 
not hedge against foreign currency exchange risk as balances in foreign currency are not significant to the group the extent of foreign 
currency exposure is monitored on an ongoing basis the majority of bonds and guarantees are funded out of the uk
at 30 september 2013 if the euro had weakenedstrengthened by 1 against the pound sterling with all other variables held constant 
pretax profit for the year would have been £001m lowerhigher 2012 £002m lowerhigher mainly as a result of foreign exchange 
gainslosses on translation of pound sterling denominated trade receivables between 1 october 2012 and 30 september 2013 the 
euro strengthened against the pound sterling by 48
at 30 september 2013 if the emirati dirham had weakenedstrengthened by 1 against the pound sterling with all other variables held 
constant pretax profit for the year would have been £001m lowerhigher 2012 £0 1m lowerhigher mainly as a result of foreign exchange 
gainslosses on translation of pound sterling denominated trade receivables between 1 october 2012 and 30 september 2013 the emirati 
dirham weakened against the pound sterling by 002
at 30 september 2013 if the australian dollar had weakenedstrengthened by 1 against the pound sterling with all other variables held 
constant pretax profit for the year would have been £001m lowerhigher 2012 no change between 1 october 2012 and 30 september 
2013 the australian dollar weakened against the pound sterling by 1 15
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 100  19 financial risk management including details of financial assets and liabilities continued
credit risk
the group’s principal financial assets are cash and cash equivalents trade receivables and unbilled revenue the group does not hold any 
collateral as security the group manages these risks through a number of measures counterparty risk on cash deposits is managed by 
adhering to the guidelines set by the board
trade receivables and unbilled revenue are managed through setup and authorisation policies for new customers it is the group’s policy 
that all customers who wish to trade on credit terms are subject to credit verification procedures an assessment of credit quality of the 
customer is made as appropriate taking into account their financial position past experience external agency ratings and other factors
where possible the risk is mitigated by use of advanced payments group policy is not to apply individual credit limits to trade and other 
receivables although total exposure and payment performance are monitored monthly both at individual project and client level
the table below shows the group’s gross trade receivables and unbilled revenue balances at the yearend date classified according  
to the counterparty
counterparty
2013 
£m
2012 
£m
local government 300 364
central government 338 174
regulated industries 61 79
private sector companies 242 368
941 985
 
management have considered the credit risk relating to other receivables and prepayments and accrued income and do not consider there 
to be any significant credit risk over and above any amounts already provided for
the table below shows the group’s cash and cash equivalents balances at the yearend date classified according to the banks credit rating
rating
2013
£m
2012
£m
aa – 05
aa 45 44
a 03 05
a 305 123
a – 211
bbb 04 05
bbb – 02
bb – 06
cash and cash equivalents 357 401
 
liquidity risk
prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through  
an adequate amount of committed credit facilities due to the dynamic nature of the underlying businesses the group maintains flexibility  
in funding by maintaining availability under committed credit lines
management monitors rolling forecasts of the group’s liquidity reserve which comprises the undrawn borrowing facility and cash and cash 
equivalents on the basis of expected cash flow in addition the group’s liquidity management policy involves projecting cash flows and 
considering the level of liquid assets necessary to meet these
details of the group’s credit facilities are disclosed in note 18
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 101 19 financial risk management including details of financial assets and liabilities continued
liquidity risk continued
the table below analyses the maturity profile of the group’s financial liabilities figures shown are undiscounted
2013
on demand
or within  
1 year
£m
between
12 years
£m
between
25 years
£m
over
5 years
£m
trade and other payables 1172 – – –
interest rate hedges 08 – – –
bank borrowings and other loans 50 50 712 –
2012
on demand
or within  
1 year
£m
between
12 years
£m
between
25 years
£m
over
5 years
£m
trade and other payables 1016 – – –
interest rate hedges 07 23 – –
bank borrowings and other loans – 50 752 –
 
price risk
the group does not hold any equity securities that are available for sale and does not have any exposure to commodity price risk
capital management
the group funds its business through a mix of debt and shareholders’ equity the group’s capital employed was financed as follows
2013
£m
2012
restated
1

£m
borrowings 812 802
less cash and cash equivalents 357 401
net debt 455 401
shareholders’ equity 780 904
total capital employed 325 503
 
the group manages its capital structure to reduce its cost of capital ensure that it remains a going concern and provide returns  
for shareholders through providing benefits for other stakeholders
the group’s banking facilities as described more fully in note 18 include a number of financial and nonfinancial covenants compliance with 
these covenants is closely monitored
1
 see note 1a
20 lease obligations
operating lease commitments – minimum lease payments
property
£m
2013
vehicles
plant and
equipment
£m
property
£m
2012
vehicles
plant and
equipment
£m
commitments under noncancellable operating leases payable
within one year 44 56 49 48
between one and five years 81 55 89 46
after five years 07 – 09 01
132 111 147 95
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 102  20 lease obligations continued
operating lease commitments – minimum lease payments continued
the group leases various offices under noncancellable operating lease agreements the leases have various terms escalation 
clauses and renewal rights the group also leases vehicles plant and machinery under noncancellable operating lease agreements
at 30 september 2013 the group had annual amounts of £04m receivable in respect of subleases on the above 2012 nil  
these subleases expire between one and five years
21 noncurrent liabilities – trade and other payables
2013
£m
2012
£m
deferred income and customer advances 07 09
contingent consideration 05 –
12 09
 
22 provisions for liabilities and charges
2013
restructuring
provisions
1
£m
insurance
claims
provisions
2
£m
dilapidation
provisions
3
£m
onerous 
contracts
4
£m
other
provisions
5
£m
total
£m
current 21 – 16 05 24 66
between one and two years – – 11 22 26 59
between two and five years – 82 14 22 – 118
noncurrent – 82 25 44 26 177
at 30 september 2013 21 82 41 49 50 243
2012
restructuring
provisions
1
£m
insurance
claims
provisions
2
£m
dilapidation
provisions
3
£m
onerous 
contracts
4
£m
other
provisions
5
restated
6

£m
total
restated
6

£m
current – restated
6
 60 – 13 35 33 141
between one and two years – – 03 21 – 24
between two and five years – 95 10 62 – 167
over five years – – 17 – – 17
noncurrent – 95 30 83 – 208
at 30 september 2012 – restated
6
 60 95 43 118 33 349
2013
restructuring
provisions
1
£m
insurance
claims
provisions
2
£m
dilapidation
provisions
3
£m
 onerous 
contracts
4
£m
other
provisions
5
£m total
at 1 october 2012 – restated
6
 60 95 43 118 33 349
amounts provided for during the year 39 13 – 06 16 74
amounts released to the income 
statement 21 05 02 38 04 70
amounts utilised during the year 57 21 – 37 02 117
reclassification – – – – 07 07
at 30 september 2013 21 82 41 49 50 243
 
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 103 22 provisions for liabilities and charges continued
2012
restructuring
provisions
1
£m
insurance
claims
provisions
2
£m
dilapidation
provisions
3
£m
onerous
contracts
4
restated
6

£m
other
provisions
5
restated
6

£m
total
restated
6

at incorporation on 13 august 2012 – – – – – –
arising from acquisition – restated
6
 66 95 44 122 33 360
amounts provided for during the period – – 08 – – 08
amounts released to the income 
statement – – 04 – – 04
amounts utilised during the year 06 – 05 04 – 15
at 30 september 2012 – restated
6
 60 95 43 118 33 349
1
  restructuring provisions principally relate to redundancy costs expected to be incurred at the balance sheet date as a result of communicated and committed 
restructuring plans these provisions will unwind within one year no reimbursement is expected for these provisions
2
  insuranceclaims provisions reflect management’s view of the likely outcome of insurance and other legal claims made against the group in connection with 
operational activities these provisions are held until utilised by the settlement of a claim or until such time as the claim is considered unlikely due to the very 
nature of these provisions it is uncertain when they may unwind as individual cases progress at unpredictable rates based on historic trends and given the nature 
of the items being provided against it is management’s judgment that they will largely settle between two and five years of the yearend no reimbursement is 
expected for these provisions
3
  dilapidation provisions relate to the expected costs of meeting dilapidationreinstatement requirements for properties leased by the group when they are exited  
and these are provided for over the term of the lease the lease expiry dates range between one and 10 years no reimbursement is expected for these provisions
4
  onerous contract provisions relate principally to property lease contracts where the ongoing level of unavoidable costs is not expected to be fully recovered by the 
economic benefits expected to be derived from using those properties the expectation is that this expenditure will be incurred over the remaining periods of the 
leases which range up to six years no reimbursement is expected for these provisions
5
 other provisions relate to management’s view of the expected costs of settling commercial contractual matters there are no individually material items to disclose
6
 see note 1a
23 share capital
number of 
shares
2013
£
number of 
shares
2012
£
authorised and allotted a ordinary shares – called up and  
fully paid
a ordinary shares of 00001p 8000000 8 8000000 8
authorised and allotted b ordinary shares – calledup and  
fully paid
b ordinary shares of 00001p each 2000000 2 2000000 2
10000000 10 10000000 10
 
a shares are held by the 3 significant shareholders the royal bank of scotland plc lloyds bank plc barclays bank plc and their 
subsidiaries b shares are held by the group’s management or trustees acting on their behalf prior to allotment
a and b shares rank equally as regards dividends a return of capital and redemption the voting rights of a and b shares are equal subject 
to the aggregate number of votes attaching to all of the shares held by each of the significant shareholders noted above or their respective 
groups each being an investor group the voting rights are restricted so that the votes conferred on each such investor group may not 
exceed 4999 of the voting rights attaching to all shares in the capital of the company
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 104  24 share premium
2013
£
2012
£
at 1 october 2012 and at 13 august 2012 8 –
arising during yearperiod – 8
at 30 september 2013 8 8
 
25 other reserves
2013
foreign
currency
translation
reserve
£m
total
£m
at 1 october 2012 04 04
currency translation differences 06 06
at 30 september 2013 02 02
2012
foreign
currency
translation
reserve
£m
total
£m
at incorporation on 13 august 2012 – –
currency translation differences 04 04
at 30 september 2012 04 04
 
26 accumulated losses
2013
£m
2012
restated
£m
at 1 october 2012 and at 13 august 2012 908 –
profit for the year 2012 loss period to 30 september 2012 193 876
actuarial loss on pension scheme valuations 80 41
deferred tax on pension scheme valuations 17 09
at 30 september 778 908
 
27 longterm incentive schemes
2012 management incentive plan ‘mip’
the group has put in place a management incentive scheme the 2012 mip  in order to aid the retention and incentivisation of the  
mip participants the 2012 mip will align the mip participants’ interests with those of the a shareholders to enhance the equity value  
of the share capital of the company
the company has issued in aggregate 2000000 b shares to the mip participants for a nominal cash consideration the value received 
by the mip participants after taking into account the consideration paid is not deemed material and accordingly there is no expense 
recognised in the consolidated income statement
the ifrs 2 fair value was calculated by reference to external and internal valuations performed at 25 august 2012 the fair value  
of the shares was £nil
the mip shares are deemed to be equity settled except to the extent there are some provisions in the articles which may result  
in certain circumstances the mip shares being cash settled by the company at the company’s discretion at 30 september 2013  
the liability in relation to the requirement to settle any amounts in cash was £nil 2012 £nil
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 105 27 longterm incentive schemes continued
mrbl limited employee benefit trust
there is one employee benefit trust currently in operation being the mrbl limited employee benefit trust the ‘ebt’ sanne trust 
company limited is trustee for the ebt the ebt holds shares in mrbl limited for the purposes of aiding the retention and incentivisation 
of future mip participants further details of which are disclosed in the note on the 2012 mip  as at 30 september 2013 the ebt held 
171000 shares 2012 140000 in mrbl limited for a nominal consideration
28 cash generated from operations
2013
£m
2012
restated
£m
profitloss for the yearperiod before tax 166 876
adjustments for
– impairment of goodwill – 879
– depreciation 44 04
– loss on disposal of fixed assets 22 –
– amortisation of intangible assets – arising from business combinations 48 03
– amortisation of intangible assets – software and other acquired intangibles 23 03
– acquisition transaction costs 12 –
– profitloss on foreign exchange 01 02
– finance income 03 03
– finance costs 76 08
cash generated from operations before working capital movements 387 20
 
29 cash and cash equivalents
cash and cash equivalents are analysed as follows
2013
£m
2012
£m
cash and cash equivalents 357 401
 
of the above cash balances £160m 2012 £296m is restricted by virtue of it being held within the group’s joint ventures and captive 
insurance company
30 retirement benefit obligations
the group operates several occupational pension schemes for its employees which were inherited from mouchel group plc when mrbl 
assumed all the liabilities of that group these schemes are a combination of defined benefit defined contribution and thirdparty defined 
benefit schemes
a schemes accounted for on a defined contribution basis
cash contributions to the group’s defined contribution schemes are recognised as pension costs in the consolidated income statement 
and no asset or liability is shown on the consolidated balance sheet
some employees who transferred to the group under the transfer of undertakings protection of employment regulations 1981 as 
amended ‘tupe’ remain members of their respective councils’ pension schemes which are prefunded defined benefit schemes where 
under the terms of the contracts the defined benefit liability effectively remains with the transferor the group accounts for these schemes 
as defined contribution schemes cash contributions are recognised as pension costs in the consolidated income statement and no asset 
or liability is shown on the balance sheet
b schemes accounted for on a defined benefit basis – group schemes
the mouchel business services limited pension scheme ‘mbs’ the mouchel superannuation fund ‘msf’ and the mouchel staff 
pension scheme ‘msps’ are funded defined benefit schemes and are disclosed as group schemes in section d overleaf for these 
three principal defined benefit schemes the future liabilities for benefits are provided for by the accumulation of assets held externally to the 
group in separate trusteeadministered funds the cost of these schemes is determined in accordance with the advice of independent 
professionally qualified actuaries on the basis of formal actuarial valuations using the projected unit credit method in line with normal 
business practice these valuations are undertaken on a triennial basis
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 106  30 retirement benefit obligations continued
b schemes accounted for on a defined benefit basis – group schemes continued
all schemes are closed to new entrants except for employees transferring to the group under tupe where the group is required to provide 
benefits which are broadly comparable to those provided under the local government pension scheme or another defined benefit scheme 
provided by the transferring employer the schemes acquired by mrbl were closed to future accrual of benefit on 31 december 2010 
for all nonpublic sector members with these members being offered entry to the mouchel group’s defined contribution schemes from 
1 january 201 1
given the membership of the schemes under the projected unit credit method the current service cost would be expected to increase  
as the members of the scheme approach retirement
the date of the last full actuarial valuation for each of the schemes was march 2010 a triennual valuation for the three years to 31 march 
2013 is currently being undertaken results are expected during 2014
the key assumptions used in valuing the retirement benefit obligation at the end of the year were 
2013

2012

discount rate 45 46
expected rate of increase in pensionable salaries 32 25
expected rate of increase in pensions in payment 18 18
expected rate of retail price inflation rpi 32 25
expected rate of consumer price inflation cpi 22 20
2013
years
2012
years
life expectancy at age 65
– current pensioners male 872 874
– current pensioners female 896 898
– future pensioners male 890 891
– future pensioners female 915 918
 
the sensitivity associated with these assumptions is as follows
effect on deficit
2013 change
mouchel 
group
scheme
 £m
mbs group
 scheme
 £m
discount rate  01  47  16
expected rate of price inflation  01  34  16
life expectancy  1 year  61  21
2012 change £m £m
discount rate  01  46  16
expected rate of price inflation  01  40  15
life expectancy  1 year  46  15
 
the trustees of each scheme determine the investment strategy for the assets held by the scheme in consultation with the principal 
employer the expected return on the scheme assets in the forthcoming year is as follows
2013

2012

equities and diversified growth funds ‘dgf’ 66 66
bonds gilts and cash 33 33
property 51 51
note data is for group schemes only
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 107 30 retirement benefit obligations continued
b schemes accounted for on a defined benefit basis – group schemes continued
equity and dgf returns are assumed to return 40 above gilts in the longterm bonds are assumed to return in line with the discount 
rate 46 and gilts and liability driven investments are assumed to return at the 20 year uk gilt yield rate 26 which reflects the average 
life of the liabilities cash is assumed to return at the bank of england base rate 05 and property at gilt yield plus a risk premium of 25
the amounts recognised in the balance sheet are as follows
£m
2013
 £m
2012

equities and diversified growth funds 1531 51 1726 62
bonds and gilts 1349 44 913 33
cash 24 1 21 1
property 127 4 121 4
fair value of plan assets 3031 100 2781 100
present value of obligations 3561 3303
liability in the balance sheet 530 522
current liability 05 05
noncurrent liability 525 517
total liability in the balance sheet as above 530 522
 
during the year funds were rebalanced to increase the mix of bonds and reduce the mix of equities
movements in the retirement benefit obligations are as follows
2013
£m
2012
£m
at 1 october 201213 august 2012 3303 –
arising on acquisition – 3321
service cost 11 01
interest cost 154 15
benefits paid 114 14
actuarial lossgain 207 20
3561 3303
 
movements in the fair value of plan assets are as follows
2013
£m
2012
£m
at 1 october 201213 august 2012 2781 –
arising on acquisition – 2831
expected return on plan assets 134 18
company contributions 103 07
benefits paid 114 14
actuarial gainloss 127 61
3031 2781
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 108  30 retirement benefit obligations continued
b schemes accounted for on a defined benefit basis – group schemes continued
the actual return on plan assets for the year was a profit of £54m 2012 loss £7 9m
2013
£m
2012
£m
current service cost – included in cost of sales 11 01
total current service cost 11 01
interest cost 154 15
expected return on plan assets 134 18
net finance costincome note 5 20 03
total recognised in the income statement 31 02
 
the principal employer after consulting with the actuaries has agreed with the trustees of each of the schemes appropriate recovery plans
the expected contributions payable based on existing funding plans and contribution rates to the defined benefit schemes for the 
forthcoming year is £7 0m 2012 £7 4m
actuarial gains and losses recognised in the statement of comprehensive income are as follows
2013
£m
2012
£m
actual return less expected return on pension scheme assets 127 61
experience gains and losses arising on the scheme liabilities 62 –
effect of changes in assumptions on the present value of scheme liabilities 269 20
actuarial loss on pension scheme valuations 80 41
deferred tax on actuarial movement in pension scheme valuations 17 09
total recognised in the statement of comprehensive income 63 32
cumulative actuarial losses recognised in the statement of comprehensive income 95 32
 
summary
the amounts recognised in the balance sheet are as follows
2013
£m
2012
£m
defined benefit obligations 3561 3303
fair value of plan asset 3031 2781
retirement benefit obligations 530 522
history of experience gains
2013 2012
experience profitloss on scheme assets £m 127 61
percentage of scheme assets  42 22
experience profitloss on scheme liabilities £m 62 –
percentage of scheme liabilities  17 –
 
c defined contribution schemes
the defined contribution arrangement provides matching employer contributions from 2 to 10 on a grade related basis 
the pension charge for contributions payable to the defined contribution schemes was £1 14m 2012 £1 1m
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 109 31 business combinations
enterprisemouchel limited
on 21 february 2013 the group acquired the remaining 50 equity interest in enterprisemouchel limited renamed em highway services 
limited from its joint venture equity partner for a consideration of £250 million before acquisition costs of £12m prior to the acquisition 
the interest in enterprisemouchel limited was proportionally consolidated under ifrs 3 2008 ‘business combinations’  the interest 
previously held by the group has been remeasured to its fair value at the acquisition date which resulted in a nil gainloss arising  
on the revaluation
ifrs 3 2008 requires the notional disposal of the 50 equity interest previously held and reacquisition of the full company at fair value 
the fair value of the interest previously held was estimated by using the purchase price for the acquisition of the remaining 50
the following table summarises the consideration paid for enterprisemouchel limited the fair value of assets acquired and liabilities 
assumed at the acquisition date
fair value at
acquisition
£m
net assets acquired
intangible assets 145
property plant and equipment 13
trade and other receivables 384
cash and cash equivalents 271
trade and other payables 473
total identifiable net assets 340
goodwill arising on acquisition 160
total consideration 500
satisfied by
cash consideration 250
fair value of joint venture previously owned 250
500
£m
cash flow
cash consideration 250
cash acquired 135
acquisition transaction costs expensed 12
net cash outflow arising from acquisition 127
total cash outflow arising from the purchase of subsidiary company 127
 
adjustments made to the fair value of assets acquired include the value of intangible assets provisions and other adjustments recognised 
on acquisition in accordance with ifrs 3 2008 ‘business combinations’  the adjustments made in respect of the acquisition are 
provisional and will be finalised within 12 months of the acquisition date
the goodwill arising on the acquisition of the business represents the premium the group paid to acquire the company which complements 
the existing business and creates significant opportunities for crossselling and other synergies of the goodwill arising an amount of £nil  
is expected to be deductible for tax purposes
the revenue included in the consolidated income statement since 21 february 2013 contributed by the acquisition of the 50  
equity interest in enterprisemouchel limited was £789m and its contribution to profit before taxation was £68m over the same period  
had enterprisemouchel limited been consolidated from 1 october 2012 the consolidated income statement would show proforma 
revenue of £6059m and profit before taxation of £238m
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
mouchel annual report and accounts 2013 110  31 business combinations continued
genica limited
on 7 june 2013 the group acquired 100 of the issued share capital of genica limited for an initial consideration of £02m in addition  
a deferred consideration of up to £05m will become payable if certain conditions are met the provisional fair value of assets acquired were 
£0 1m and will be finalised in 12 months of the acquisition date resulting in goodwill acquired of £07m
the goodwill arising on the acquisition of the business represents the premium the group paid to acquire the company which complements 
the existing business and creates opportunities for crossselling and other synergies of the goodwill arising an amount of £nil is expected 
to be deductible for tax purposes
the revenue included in the consolidated income statement since 7 june 2013 contributed by the acquisition of genica limited was £nil 
and its contribution to profit was £nil due to the immaterial nature of this acquisition the full disclosure required under international financial 
reporting standard 3 ‘business combinations’ have not been presented
2020 liverpool limited
on 27 september 2013 the group acquired the remaining 199 share capital of 2020 liverpool limited from its minority partner for  
a consideration of £199
due to the immaterial nature of this acquisition the full disclosure required under international financial reporting standard 3 ‘business 
combinations’ have not been presented
mrbl limited acquisition
mrbl limited was incorporated on 13 august 2012 and on 25 august 2012 bought the subsidiaries and took on all the obligations and 
liabilities from mouchel group plc mouchel group plc the previous parent company and not the acquired trading subsidiaries was put 
into administration on 24 august 2012 the acquisition was accounted for using the acquisition method and the operations of these were 
included in the income statement from the date of acquisition
mrbl ’s acquisition in 2012 was accounted for under ifrs 3 business combinations and accordingly mrbl recognised the assets and 
liabilities at fair value with the difference between the consideration paid and the fair value of net assets acquired being recognised as 
goodwill the provisional goodwill recognised was £107 2m being the difference between the consideration paid of £07m and the net 
liabilities acquired of £1065m the value of the consideration paid was established by the administrators of mouchel group plc and in order 
for the restructuring to take effect was required to be set at a positive level despite the significant net liabilities acquired this purchase price 
did not therefore reflect a true open market value accordingly the directors have reduced the goodwill initially recognised of £107 2m by 
way of a noncash impairment charge of £857m net £215m the initial fair values attributed to the assets and liabilities were finalized in the 
current year and a noncash fair value change of £34m was made to software and other intangiblessee note 10 less a £07m adjustment 
to provisions
2013
£m
provisional goodwill at 30 september 2012 215
other intangible assets fair value adjustment 34
trade and other receivables fair value adjustment 40
trade and other payables fair value adjustment 26
provisions for liabilities and charges fair value adjustment 29
impairment of goodwill 22
final net goodwill relating to mrbl limited acquisition 242
 
total acquisition transaction costs expensed in the year were £12m 2012 £nil please refer to note 3 nonunderlying items  
for further information
32 contingent liabilities
contingent liabilities at 30 september 2013 in respect of guarantees and indemnities in the normal course of business totalled £12 1m 
2012 £14 1m and represented drawings on the credit facilities disclosed in note 18 much of this arises from bonds issued by the group’s 
bankers in support of specific contracts and which can be called at any time by the client who would ordinarily do so in the event of the 
group’s poor contractual performance no such calls were made during the year no reimbursement would be expected if calls were made
the group has no overdraft facilities 2012 £nil
the company and various of its subsidiaries are from time to time parties to legal proceedings and claims which arise in the ordinary 
course of business provisions are maintained by the group having regard to the size and nature of the claims and the group’s best 
estimate of the likely settlement the directors do not believe that the outcome of these proceedings actions and claims either individually 
or in aggregate will have a materially adverse effect upon the group’s financial position
notes to the consolidated financial statements
for the year ended 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 111 notes to the consolidated financial statements
for the year ended 30 september 2013
32 contingent liabilities continued
the group’s liabilities under the revolving credit facility detailed in note 18 is guaranteed on a joint and several basis by mrbl limited 
mouchel finance limited mouchel limited mouchel ewan limited mouchel rail limited mouchel traffic support limited mouchel 
holdings limited mouchel business services limited mouchel management consulting limited mouchel rail no 2 limited mouchel 
finance  treasury holdings limited mouchel rail no 3 limited mouchel international jersey limited and mouchel middle east limited
33 postbalance sheet events
on 10 october 2013 the company passed the necessary resolutions to increase the authorised and allotted b ordinary shares of 00001p 
each by 89000 to 2089000 the shares were issued to a member of key management under the mip  on the same date 171000 b 
ordinary shares held by the ebt were also distributed to other members of key management
on 1 1 december 2013 the group renegotiated its banking facilities the key change to the facilities agreement was to include em highway 
services limited as a guarantor to reflect that it is now a wholly owned subsidiary in addition a number of covenants were reset to provide 
appropriate headroom in accordance with the latest business plans
34 related party transactions
the following transactions were undertaken with the joint venture entities to which the group is party
2013
£m
2012
£m
sales to joint venture entities 126 21
purchases from joint venture entities 36 04
net amount due to the group at the yearendperiodend 52 23
£m £m
loans to related parties 42 33
 
the loans to related parties are to joint venture companies
the amount borrowed from and interest paid to related parties being the group’s major shareholders as disclosed in note 23 is disclosed 
in note 18 and 5 respectively
amounts due to the group are unsecured and will be settled in cash no guarantees have been given or received
the group made contributions of £103m 2012 £07m to the defined benefit pension schemes during the year
no expense has been recognised in respect of bad or doubtful debts due from any joint ventures in the year ended 30 september 2013 
2012 £nil and no amount has been provided in relation to amounts outstanding at 30 september 2013 2012 £nil
key management remuneration
2013
£m
2012
£m
salaries and shortterm employee benefits 23 02
 
key management comprises the executive directors and members of the emt there were no other transactions with key management 
personnel during the year ended 30 september 2013 2012 £nil in addition to the above members of key management were awarded 
1860000 b ordinary shares under the mip in the period to 30 september 2012
financial statements
mouchel annual report and accounts 2013 112  note
2013
£m
2012
£m
fixed asset investments e 07 07
creditors amounts falling due after more than one year f 07 07
total assets less current liabilities – –
net assets – –
capital and reserves
called up share capital i – –
share premium account j – –
profit and loss account k – –
total shareholders’ funds – –
 
the notes on pages 1 15 to 1 17 are an integral part of the financial statements
the financial statements on pages 1 13 to 1 17 were authorised for issue by the board of directors on 1 1 december 2013 and were signed 
on its behalf by
paul rayner
group finance director
company number 8177998
company balance sheet
as at 30 september 2013
financial statements
financial statements
mouchel annual report and accounts 2013 113 we have audited the parent company financial statements of mrbl limited for the year ended 30 september 2013 which comprise 
balance sheet and the related notes the financial reporting framework that has been applied in their preparation is applicable law and 
united kingdom accounting standards united kingdom generally accepted accounting practice
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement set out on page 66 the directors are responsible for the preparation of 
the parent company financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express 
an opinion on the parent company financial statements in accordance with applicable law and international standards on auditing uk and 
ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 3  
of part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume responsibility for 
any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by 
our prior consent in writing
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable  
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment 
of whether the accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and 
adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall presentation  
of the financial statements in addition we read all the financial and nonfinancial information in the annual report to identify material 
inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on  
or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we become aware of any apparent 
material misstatements or inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion the parent company financial statements
• give a true and fair view of the state of the company’s affairs as at 30 september 2013
• have been properly prepared in accordance with united kingdom generally accepted accounting practice and 
• have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and directors’ report for the period for which the parent company financial 
statements are prepared is consistent with the parent company financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our opinion
• adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received 
from branches not visited by us or
• the parent company financial statements are not in agreement with the accounting records and returns or 
• certain disclosures of directors’ remuneration specified by law are not made or
• we have not received all the information and explanations we require for our audit
other matters
we have reported separately on the consolidated group financial statements of mrbl limited for the year ended 30 september 2013
julian jenkins senior statutory auditor
for and on behalf of pricewaterhousecoopers llp  
chartered accountants and statutory auditors  
london
1 1 december 2013
independent auditors’ report to the members of mrbl limited
financial statements
mouchel annual report and accounts 2013 114  notes to the company financial statements 
for the year ended 30 september 2013
a accounting policies
the financial statements are prepared in accordance with the companies act 2006 and applicable accounting standards in the 
united kingdom the principal accounting policies which have been applied consistently throughout the year are set out below
a basis of preparation
the financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards
the financial statements for mrbl limited a private limited company incorporated in england  wales and its subsidiaries have been 
prepared on a going concern basis in determining that this is an appropriate basis for preparing the financial statements the directors have 
had regard to the factors affecting the future development performance and financial position of the group including its cash flows liquidity 
position borrowing facilities and the risks and uncertainties relating to its business activities
as discussed in note 18 mrbl limited amended the group’s banking facilities as part of the acquisition of enterprisemouchel limited 
after the yearend on 1 1 december 2013 mrbl limited renegotiated the group’s banking facilities see note 33 for further detail as part 
of the amendment and renegotiation careful consideration has been given to the budgeting and ongoing cash management within the 
business which have been subject to extensive internal and external review notwithstanding the current economic climate the directors are 
therefore satisfied that sufficient headroom exists within the banking facilities
after considering these factors the directors have a reasonable expectation that the company and the group have adequate resources to 
continue in operational existence for the foreseeable future accordingly they continue to adopt the going concern basis in preparing the 
group’s annual financial statements
the company has taken advantage of the exemption under section 408 of the companies act 2006 from presenting its own profit and 
loss account
under financial reporting standard frs no 1 revised the company is exempt from the requirement to prepare a cash flow statement as 
its cash flows are included within the published consolidated statements of mrbl limited
the company has taken advantage of the exemption contained within frs 29 and has not provided the required financial instruments 
disclosures on the basis that the group’s consolidated financial statements include consolidated ifrs 7 disclosures which are compliant 
with the requirements of frs 29
b changes in accounting policies
no new accounting standards having a material impact on the group were mandatory for the financial year ended 30 september 2013
c investments in subsidiaries
investments in subsidiaries are stated at cost less provision for impairment dividends received and receivable are credited to the 
company’s profit and loss account
d related parties
the company has taken advantage of the exemption contained within frs 8 and has not therefore disclosed transactions or balances with 
entities which are whollyowned subsidiaries
b employees and directors
the company has 5 employees being the directors of the company the details of their remuneration and pension entitlements 
are contained in note 6 of the consolidated financial statements these costs will be recharged to the operating subsidiaries of the 
mrbl group
key management comprises the 5 directors of the company there were no other transactions with key management personnel during the 
year ended 30 september 2013 2012 nil
c results of the company
as permitted by section 408 of the companies act 2006 the profit and loss account of the company is not presented as part of these 
financial statements
the company’s result for the financial year amounted to a loss of £6000 2012 loss of £15000
the fees payable in respect of the statutory audit of the company were £20000 2012 £20000 which were paid by a fellow 
group company
d dividends
the directors have not proposed any dividends for the year to 30 september 2013 2012 £nil
financial statements
financial statements
mouchel annual report and accounts 2013 115 notes to the company financial statements
for the year ended 30 september 2013
e fixed asset investments
shares in subsidiary undertakings
2013
£m
2012
£m
cost and net book value
at 30 september 07 07
 
the directors believe that the carrying value of the investments is supported by their underlying net assets
details of the principal operating subsidiaries and joint ventures held directly and indirectly by the company can be found in note 12 of the 
consolidated financial statements
f creditors amounts falling due after more than one year
2013
net
£m
2012
net
£m
amounts owed to group undertakings 07 07
 
amounts owed to group undertakings are unsecured and noninterest bearing
g financial risk management
the company has financial instruments in the form of loan balances payable to other group companies these are classified as liabilities at 
amortised cost
h lease obligations
the company had no operating lease commitments as at 30 september 2013 2012 £nil
i called up share capital
2013 2012
number of
shares £
number of
shares £
authorised and allotted a ordinary shares – called up and  
fully paid
a ordinary shares of 00001p 8000000 8 8000000 8
authorised and allotted b ordinary shares – called up and  
fully paid
b ordinary shares of 00001p 2000000 2 2000000 2
10000000 10 10000000 10
 
a shares are held by the 3 significant shareholders rbs group plc barclays bank plc and lloyds banking group plc b shares are held by 
the group’s management or trustees acting on their behalf prior to allotment
a and b shares rank equally as regards dividends a return of capital and redemption the voting rights of a and b shares are equal subject 
to the aggregate number of votes attaching to all of the shares held by each of the significant shareholders noted above or their respective 
groups each being an investor group is restricted so that the votes conferred on each such investor group may not exceed 4999 of the 
voting rights attaching to all shares in the capital of the company
j share premium account
2013
£
2012
£
at 1 october 201213 august 2012 8 –
movement during the yearperiod – 8
at 30 september 8 8
 
financial statements
mouchel annual report and accounts 2013 116  notes to the company financial statements
for the year ended 30 september 2013
k profit and loss account
2013
£m
2012
£m
at 1 october 201213 august 2012 – –
loss for the financial yearperiod – –
at 30 september – –
 
l related party transactions
no related party transactions have been recorded in the year other than those with whollyowned subsidiary companies 2012 none
m postbalance sheet events
on 10 october 2013 the company passed the necessary resolutions to increase the authorised and allotted b ordinary shares of 00001p 
each by 89000 to 2089000 the shares were issued to a member of key management under the mip  on the same date 171000 b 
ordinary shares held by the ebt were also distributed to other members of key management
on 1 1 december 2013 the group renegotiated its banking facilities the key change to the facilities agreement was to include em highway 
services limited as a guarantor to reflect that it is now a wholly owned subsidiary in addition a number of covenants were reset to provide 
appropriate headroom in accordance with the latest business plans
financial statements
financial statements
mouchel annual report and accounts 2013 117 other information
company information
directors
david shearer – chairman
grant rumbles – chief executive
paul rayner – finance director
ian duncan – nonexecutive director
mike jeffries – nonexecutive director
independent auditors
pricewaterhousecoopers llp 
chartered accountant and statutory auditors 
1 embankment place london wc2n 6rh
lawyers
freshfields bruckhaus deringer llp 
65 fleet street london ec4y 1hs
bankers
the royal bank of scotland plc 
250 bishopsgate london ec2m 4rb
barclays bank plc 
1 churchill place london e14 5hp
lloyds bank plc 
25 gresham street london ec2v 7hn
registered office
mrbl limited 
export house cawsey way woking surrey united kingdom 
gu21 6qx
company number 8177998
registered in england and wales
mouchel annual report and accounts 2013 118  notes
financial statements
mouchel annual report and accounts 2013 119 notes
mouchel annual report and accounts 2013 120  we design 
bridges 
we build 
great 
relationships
designed by luminouscouk wwwmouchelcom
© copyright of mrbl limited


Summary:
 key achievements in 2013
p30 business services p18 infrastructure services
revenue
underlying operating profit

 
£5553m £281m
underlying ebitda

underlying profit before tax

£370m £208m
underlying cash generated from 
operating activities

underlying cash conversion  
from ebitda

£393m 106
pipeline orderbook
£24bn £17bn
operating profit profit before tax
£239m £166m
net cash generated from  
operating activities 
£189m
  underlying metrics are those used by 
management to measure the performance 
of the business before taking account of non
underlying items details of which are set out 
in note 3 of the financial statements
highlights
overview
1 highlights
2 understanding our business
4 chairman’s statement
5 forward thinking led by  
our values
 – innovation
 – integrity
 – responsibility
 – excellence
business review
12 chief executive’s  
strategic review
18 infrastructure services
30 mouchel business services
40 financial review
44
46
risk review
corporate 
responsibility review
governance
54 board of directors
56 strategic report
57 directors’ report
60 statement on corporate 
governance
financial statements
66 statement of directors’ 
responsibilities
67 consolidated income 
statement
68 consolidated statement  
of comprehensive income
69 consolidated balance sheet
70 consolidated cash flow 
statement
71 consolidated statement  
of changes in equity
72 independent auditors’ report 
to the members of mrbl 
limited
73 notes to the consolidated 
financial statements
113 company balance sheet
114 independent auditors’ report 
to the members of mrbl 
limited
115 notes to the company 
financial statements
118 company information
• acquired remaining 50 of our 
highways and maintenance joint 
venture enterprisemouchel in february 
2013 it was renamed em highway 
services ltd em in august 2013
• won largest ever contract 
with highways agency – area 
3 valued at circa £700m
• won london highways alliance 
lohac south with transport for 
london valued at circa £400m
• won scottish trunk roads south west 
scotland valued at circa £125m
• won threeyear contract extension with 
oldham council valued at circa £50m
• won single supplier status on three
year police pensions administration 
service framework for cheshire 
and merseyside police worth 
circa £25m option to extend
• broke into higher education sector 
winning a place on all four lots of 
university of liverpool property 
framework valued at circa £200m
mouchel annual report and accounts 2013 1
financial statements governance business review overview