Troubled consulting group Mouchel has sold its rail business to Australian operation Sinclair Knight Merz for £3.4m in cash.

The deal is expected to be completed by the end of the month, with the money being used to help pay off debt.

Mouchel has had a difficult few weeks after an £8.6m black hole appeared in its accounts, subsequently seeing both chairman and chief executive resign.

Grant Rumbles, appointed as new Mouchel chief executive said: “The sale of Mouchel Rail is a key step in our strategy to focus on Mouchel’s leading positions in core markets.

“We wish the rail business and its employees every success in the future.”

19/10/2011