Infrastructure and maintenance firm Mouchel said it had agreed a deal with lenders to safeguard its future, as it posted increased losses in a year dominated by contract blunders, tough trading and management resignations.

Mouchel, which has refinanced its banking facilities once already this year, on Wednesday said it had reached a deal with its principal lenders for a new 129 million pound loan and credit facilities of up to 51 million pounds. The deal has helped the company avoid breaching the terms of its current banking facilities.

The group, which rejected a takeover bid of around 330 million from VT Group in early 2010 but now has a market value of just 14 million pounds, said its full-year loss before tax rose to 64.8 million pounds from 14.7 million a year ago.

Underlying full-year profit before tax and exceptional items dropped 84 percent to 5 million pounds, below the 10.7 million pounds forecast by a Thomson Reuters I/B/E/S poll of 11 analysts.

Last month it warned that a statistical error and mounting risks to contracts would knock 60 percent off profit, resulting in Richard Cuthbert resigning as chief executive, and then later chairman Bo Lerenius.

Shares in the group, which helps build and maintain Britain's motorways and roads, closed at 17.5 pence on Tuesday.

Its business has been hit by cuts to government spending over the last year.

(Reporting by Neil Maidment; editing by Rhys Jones)