Actually, we have some neighbors here in the U.S. that use mulching mowers and have been quite satisfied with the performance. The key seems to be, as AlBags intimates, to mow the lawn when it's ready, not letting it get too long. It should be cut when it reaches 3 to 4 inches but not shorter than 2 1/2 inches or so. Their lawns look very nice.
I'd suggest looking at one of the new generation rechargeable mowers, if you're not mowing an estate size lawn. Here, the Black & Decker MM875 Electric Mulching Mower sells for about $210 and has very high ratings. It's quiet as well and lasts a long time...
Key to any mulcher is to keep the blade sharp (as it is with any mower actually)...