Mouchel sells off its railway division

Beleaguered infrastructure group Mouchel yesterday sold its rail arm to Australian firm Sinclair Knight Merz for £3.4 million and a further £2.5m in working capital.

The group, which has seen two chairmen and a chief executive depart following a profits warning two weeks ago, said the money raised would go to pay off debts. Analysts said the deal would help Mouchel during negotiations with banks.