THE Dubai property crash contributed to Mouchel announcing an annual pre-tax loss of £13.5m yesterday.

The professional services group, which operates 2020 Liverpool as a joint venture with the city council, said it had endured a “difficult and disappointing year”.

Mouchel’s core business performed strongly, with revenue up 13% to £740.6m and margins were maintained.

However, exceptional items of £53.6m caused a pre-tax loss of £13.5m.

Richard Cuthbert, Mouchel chief executive, said: “In the second half, we have had to deal with the substantial withdrawal from the rail market, together with the impact of the economic downturn on our Middle East and management consulting businesses.

“These have clouded what has otherwise been another year of growth and strong performance in our core business.”

Mr Cuthbert believes that, while the general economic outlook “remains challenging” there would be lots of opportunity for Mouchel in the public sector, despite the forthcoming budget cuts.

The group provides a range of services for Liverpool and Knowsley councils under its 2020 brand, while also working with several other local authorities.

He added: “The pressure on public spending brings uncertainty for all public services providers, but is also a source of huge opportunity for Mouchel, as clients in all of our target markets strive to deliver better services more efficiently.

“Our focus on the transformation of essential services and the maintenance of vital infrastructure means that we will continue to benefit from sustained levels of public expenditure in our core markets and from the inevitable trend for increased outsourcing, signs of which we are already seeing.”

Its education division has had an “extremely successful” year, continuing to win a number of contracts for City Academy projects. These include St Helens, where it recently successfully tendered for the academy project.