MOUCHEL, the firm which runs several of Bournemouth Borough Council’s departments, has reported results that it says are ahead of expectations.

Around 480 council staff were transferred into Mouchel’s employment in deals worth around £180million to the company over 10 years.

The outsourcing was aimed at finding millions of pounds in efficiency savings.

Mouchel has since suffered a string of problems nationally, with the company going into administration in 2012 and being thrown a lifeline by a consortium of banks But it said its results for the six months ending March 31 had trumped the board’s expectations.

The Group’s revenue for the period was £260.6m and there was an underlying operating profit of £13.8m.

The order book was £1.3bn, up by £0.2bn from the year-end and, subsequent to the period end, has grown to £1.8bn as a result of further contract wins.

The Group’s order pipeline stands at £1.9bn – its highest in the past three years.

Its operating profit was £10.6m and its profit before tax was £7.5m.

In the same period last year, prior to the financial restruct-uring in August 2012, Mouchel made an operating loss.

Net debt at March 31 was £53.5m compared to £40.1m at September 30, 2012, but the firm said this was after funding the acquisition of the 50 per cent shareholding in Enter-priseMouchel, which was not already owned by the Group.

Since the period end, net debt has reduced to £45.5m as a result of continuing strong cash generation.

Mouchel’s chairman, David Shearer, said: “As Mouchel celebrates 125 years in business I am pleased to report a strong set of interim results for the Group which are ahead of the board’s budgeted expectations. In the six months to 31 March 2013 the Group has made excellent progress both operationally and financially.

“The operational restructuring was brought to a conclusion at the end of March and the Group is delivering on all of its strategic objectives.

“The revenue, profit, cash generation and order book results all show clearly the positive outcome of the restructuring and provide a strong financial platform for growth.”