RNS Number:9444B
Management Consulting Group PLC
13 August 2007
Financial results for the six months ended 30 June 2007
Management Consulting Group PLC ("MCG" or "the Group"), the international
management consultancy group, today announces its results for the six months
ended 30 June 2007.
Key points
* Revenue up 49% on last year at #100.5 million (2006: #67.3 million)
* Profit from operations before non-recurring items and amortisation of
acquired intangibles up 55% to #10.2 million (2006: #6.6 million)
* Profit from operations up 20% to #8.3 million (2006: #6.9 million)
* Profit before tax and amortisation of intangibles up 11% at #8.1 million
(2006: #7.3 million)
* Basic earnings per share of 1.9 pence (2006: 2.9 pence)
* Earnings per share excluding amortisation of acquired intangibles and
non-recurring items of 2.6 pence (2006: 2.7 pence)
* Current order book solidly ahead of last year on like-for-like basis
* Ineum Consulting fully integrated and performing ahead of expectations
* Interim dividend of 0.33 pence (2006: nil)
Rolf Stomberg, Chairman:
"In the light of the Group's increased size and diversity of consulting
offerings, the board has decided to re-commence the payment of an interim
dividend. The dividend has been set at one-third of the total pay out in respect
of 2006 at 0.33 pence per share which will smooth the return to shareholders
over a year."
Kevin Parry, Chief Executive:
"This is the first set of results that include Ineum Consulting in the Group for
an entire reporting period. I am delighted that its integration has been
completed in a timely manner. Ineum has performed robustly, ahead of our
expectations at the time of its acquisition, and is clearly earnings accretive.
The Group's order book is solidly ahead of its position last year. For all our
businesses the pipelines of work are good and allow us to look to the future
with confidence."
For further information, please contact:
Management Consulting Group PLC
Kevin Parry Chief Executive 020 7710 5000
Craig Smith Finance Director 020 7710 5000
Maitland
Suzanne Bartch 020 7379 5151
Peter Ogden 020 7379 5151
An analyst briefing will be held today at the offices of Management Consulting
Group PLC on the 6th floor of Fleet Place House, 2 Fleet Place, Holborn Viaduct,
London EC4M 7RF at 9.30 am.
Notes to Editors
Management Consulting Group PLC (MMC.L) is a group comprising a range of
consulting and professional services offerings.
It operates through five divisions: Ineum Consulting, Parson Consulting,
Proudfoot Consulting, Salzer Consulting and Viaduct Consulting. Ineum Consulting
provides consulting services with industry expertise. Parson Consulting
specialises in financial management consulting. Proudfoot Consulting specialises
in operational improvement consulting. Salzer Consulting specialises in
starting, managing and restructuring businesses in Asian markets and Viaduct
Consulting specialises in commercial due diligence. The businesses operate
worldwide. Viaduct Consulting commenced operations in August 2007. For further
information, visit www.mcgplc.com.
Important note
This interim statement contains certain forward-looking statements with respect
to the financial condition, results, operations and businesses of Management
Consulting Group PLC. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon circumstances that
will occur in the future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed or implied by
these forward-looking statements and forecasts. Nothing in this interim
statement should be construed as a profit forecast.
Management Statement
The Group's trading results are ahead of the board's expectations at the time of
the trading update provided on 26 April 2007: Ineum Consulting's inaugural
contribution to the first half results showed significant like-for-like growth
and Proudfoot Consulting performed slightly better than in the second half of
last year; Parson Consulting's results were mixed.
The results for the six months ended 30 June 2007 are summarised as follows:
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 2007 30 June 2006 31 Dec 2006
#'000 #'000 #'000
---------- --------- ---------
Revenue
Ineum Consulting 40,481 - 23,709
Parson Consulting 21,382 15,687 34,301
Proudfoot Consulting 38,203 51,656 88,658
Salzer Consulting 473 - 222
---------- --------- ---------
100,539 67,343 146,890
---------- --------- ---------
Underlying profit/(loss) from
operations*
Ineum Consulting 4,584 - 2,780
Parson Consulting (827) (1,857) (2,108)
Proudfoot Consulting 6,591 8,431 15,575
Salzer Consulting (189) - (91)
---------- --------- ---------
10,159 6,574 16,156
---------- --------- ---------
*before non-recurring items and acquired intangible asset amortisation. In 2007,
these comprise #1,277,000 integration costs and #603,000 amortisation of
acquired intangible assets (six months ended 30 June 2006: release of #335,000
surplus provision).
Group results
Revenue for the six months ended 30 June 2007 was up by 49% compared with the
first half of 2006.
Ineum Consulting joined the Group on 1 September 2006. The aggregate revenue of
the entities acquired grew by 27% to #49.9 million (2006 first half
pre-acquisition revenue: #39.3 million). The acquired financial management
business is now operating as Parson Consulting and the revenue has been split in
the above table in line with the reorganised operating structure.
The performance of Parson Consulting continued to be mixed. Overall the
like-for-like revenue declined by 9% compared with the first half of last year
due to a shortfall in the US business. There was 8% revenue growth in Europe and
the rest of the world which now accounts for 72% of the Parson Consulting
business.
Proudfoot Consulting's revenue increased slightly compared with the second half
of last year but, as previously anticipated, declined by 26% compared with the
exceptionally strong first half of last year.
Sterling's strength against the US dollar adversely impacted the reported
revenue by approximately #3.7 million compared with the first half of 2006.
In the period, 27% of Group revenue was attributable to the Americas (six months
ended 30 June 2006: 53%). American revenues decreased by 26% compared with the
corresponding period of 2006. Of that decrease, seven percentage points are
accounted for by currency translation. Europe's share of revenue was 68% (six
months ended 30 June 2006: 36%) with reported revenues 180% up compared with the
corresponding period of 2006 reflecting the acquisition of Ineum; on a
like-for-like basis, the revenue increased by 15%. Approximately 5% (six months
ended 30 June 2006: 10%) of Group revenue is earned outside the Americas and
Europe.
The Group's gross margin continued to be well managed and was 50% (six months
ended 30 June 2006: 51%).
Selling and underlying administrative costs increased due to the acquisitions of
Ineum and Salzer. There were one-off integration costs, associated with the
acquisitions, of #1.3 million which have been incurred in line with the estimate
in the Ineum prospectus and substantially comprise technology, people
reorganisation, legal and travel costs. The remaining non-recurring costs to be
incurred in the second half will be less than #0.5 million.
The underlying profit from operations before exceptional items and the
amortisation of acquired intangible assets rose by 55% to #10.2 million (six
months ended 30 June 2006: #6.6 million). Including those items, profit from
operations increased by 20% to #8.3 million (six months ended 30 June 2006: #6.9
million).
Net finance costs increased by #1.2 million to #0.8 million, reflecting the debt
taken on to finance the acquisition and operations of Ineum Consulting. The
profit before tax was little changed at #7.5 million (2006: #7.3 million).
The tax charge on pre-tax profits is 31% compared with 28% for the first half of
2006. This includes four percentage points in respect of deferred tax that is
required to be charged in respect of tax deductions for goodwill but will not
become payable unless consulting businesses are sold. The underlying tax rate of
27% is below the statutory rate of tax due to the utilisation of brought forward
losses that the Group has not previously been able to recognise as deferred tax
assets.
The consultancies
Ineum Consulting has performed ahead of expectations at the time of its
acquisition. It made an underlying operating profit of #4.6 million in the first
half. All sectors have performed well with particularly strong results from the
public and financial sectors. Ineum Consulting continues to invest in the
expansion of its offerings outside France. The margin for Ineum Consulting
remained little changed on the increased revenue due to the growth in the public
sector which commands lower fee rates than the private sector.
Parson Consulting's performance remained weak in North America. Overall there
was an operating loss of #0.8 million, down from a loss of #1.9 million in the
first half of last year. It is however too soon to see an improvement in trading
associated with the recent investment in people in the US. The businesses
outside the US made solid progress with a particularly strong contribution from
the merged French business.
Proudfoot Consulting revenues declined in the period, resulting in an operating
profit of #6.6 million (2006 first half: #8.4 million). This result was expected
due to the exceptionally strong first half last year where a number of large
client engagements came to a natural end. Both the European and American
businesses were adversely affected. The Brazilian business, which opened last
year, has grown well and is already profitable. The margin for Proudfoot
Consulting remained little changed on the reduced revenue.
Salzer Consulting made a small underlying operating loss of #0.2 million. In
line with the strategy for its development, we are investing in expanding its
resources to meet client demand.
Earnings per share
The basic earnings per share for the six months ended 30 June 2007 decreased by
34% to 1.9 pence compared with 2.9 pence in the corresponding period last year.
Excluding the impact of non-recurring items and the amortisation of intangible
assets, the earnings per share were little changed at 2.6 pence compared with
2.7 pence in the first half of last year. The acquisition of Ineum enhanced
earnings by approximately 22% before the amortisation of intangibles but the
overall earnings advancement was held back by the reduction in Proudfoot's
operating profit.
Dividend
In the light of the increase in the Group's size and increased diversity of
consulting offerings, the board is pleased to re-commence the payment of an
interim dividend. It is our intention in future to target an interim dividend of
approximately one third of the previous final dividend. Accordingly, a dividend
of 0.33 pence per share will be paid on 22 October 2007 to shareholders on the
register on 21 September 2007.
Balance sheet
The Group's net debt was #28.8 million compared with net cash of #23.5 million
at 30 June 2006. The overall level of net debt is the same as at the year end
reflecting the absorption of working capital resulting from the growth of Ineum
Consulting and the seasonality of the Group's cash flows.
Progress has been made in improving Ineum's working capital management with a
net inflow in the period from the better management of receivables.
The deficit related to the closed defined benefit pension and medical plans
decreased substantially from #6.1 million at 30 June 2006 to #2.9 million at 30
June 2007 as a result of cash contributions, the investment performance and the
weaker US dollar compared with Sterling.
Strategic direction
Our strategic focus is unchanged. We are building a Group comprising a series of
consultancies with particular specialisations in different geographies. The
diversification of the offerings in 2006 has added to the strength and decreased
the risks of the Group from service line and geographical perspectives. Each of
the consulting businesses currently comprising the Group has excellent medium
term prospects.
Ineum Consulting added new depth to our consulting offerings, enabling clients
to select a Group consultancy that has deep industry expertise. Its core
domestic market is France and this has resulted in a bias in the Group's revenue
towards Europe. It remains our desire to build a Group with a reasonably even
balance of business between North America and Europe. The integration of Ineum
has progressed well and slightly ahead of our timetable; it is now fully
integrated into the Group as one of the core consultancies.
In the second half of the year, the Group commenced a start-up operation,
Viaduct Consulting, which provides commercial due diligence, initially serving
the European market. This is in response to an identified gap in the market
place for independent commercial due diligence. Its revenue and profit
contribution in the current year will be immaterial.
The co-ordination of major client relationships across the consultancies
continues to increase through the global accounts programme, as does engagement
specific co-operation, allowing us to bring a broad range of deep expertise to
our clients.
Going forward we will continue to expand the geographical overlap of the
businesses to maximise the benefit that comes from our existing infrastructure.
We will also expand our offerings organically and by acquisitions commensurate
with the market opportunities and the absorption of prior acquisitions into the
Group. Whilst size in itself is not a measure of success, the diversification of
risk that comes with size and the wider product offerings are important aspects
of future success.
Outlook
As anticipated, Group's order book is solidly ahead of its position at the
beginning of the year and at the same time last year. On a like-for-like basis,
taking account of the impact of acquisitions, the current order book is
significantly higher in both Ineum Consulting and Proudfoot Consulting and
marginally higher in Parson Consulting. The pipelines of work are good.
Work to be won in the remainder of the year is, as usual, a key determinant of
the outcome for the year as a whole and so it is premature to comment
specifically on the likely results for the current calendar year. Nevertheless,
we remain confident that the Group will show good progress in 2007.
Dr Rolf Stomberg Kevin Parry
Chairman Chief Executive
13 August 2007
Independent review report
by Deloitte & Touche LLP to Management Consulting Group PLC
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 June 2007 which comprises the consolidated income
statement, the consolidated statement of recognised income and expense, the
consolidated balance sheet, the consolidated cash flow statement and related
notes 1 to 7. We have read the other information contained in the interim report
and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the Company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2007.
Deloitte & Touche LLP
Chartered Accountants
London
13 August 2007
Group income statement
Six months ended 30 June 2007 Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
Note #'000 #'000 #'000
----- -------- -------- --------
Continuing operations
Revenue 3 100,539 67,343 146,890
Cost of sales (50,287) (32,697) (73,415)
-------- -------- --------
Gross profit 50,252 34,646 73,475
Selling costs (23,990) (19,370) (40,169)
-------------------------------------------------------------------------------
Administrative expenses - (16,103) (8,702) (17,150)
underlying -------- -------- --------
Profit from operations before
non-recurring expenses and
amortisation of acquired
intangibles 10,159 6,574 16,156
Administrative (expenses)/income -
non-recurring (1,277) 335 (1,765)
-------- -------- --------
Profit from operations before
amortisation of acquired
intangibles 8,882 6,909 14,391
Administrative expenses -
amortisation of
acquired intangibles (603) - (943)
-------------------------------------------------------------------------------
Total administrative expenses (17,983) (8,367) (19,858)
-------- -------- --------
Profit from operations 3 8,279 6,909 13,448
Investment income 459 531 1,176
Finance costs (1,271) (125) (1,276)
-------- -------- --------
Profit before tax 7,467 7,315 13,348
Tax expense 5 (2,318) (2,014) (4,598)
-------- -------- --------
Profit for the period 5,149 5,301 8,750
-------- -------- --------
Earnings per share - pence
From continuing operations
Basic 6 1.9 2.9 4.1
Diluted 6 1.9 2.8 4.1
Basic - excluding amortisation of
acquired
intangibles and non-recurring items 6 2.6 2.7 5.4
-------- -------- --------
Group statement of recognised income and expense
Six months ended 30 June 2007 Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
#'000 #'000 #'000
-------- -------- ------
Exchange differences on translation of
foreign operations (1,178) (3,261) (4,904)
Actuarial gains on defined benefit pension
fund and medical schemes 1,783 3,734 3,284
Tax on items taken directly to equity 101 449 600
-------- -------- ------
Net income/(expense) recognised directly in
equity 706 922 (1,020)
Profit for the period 5,149 5,301 8,750
-------- -------- ------
Total recognised income and expense for the
period 5,855 6,223 7,730
-------- -------- ------
Group balance sheet
As at 30 June 2007
Unaudited Unaudited Audited
30 June 30 June 31 Dec
2007 2006 2006
#'000 #'000 #'000
-------- -------- -------
Non-current assets
Intangible assets 161,804 67,419 162,546
Property, plant and equipment 2,261 1,460 2,294
Deferred income tax assets 3,345 1,258 3,597
-------- -------- -------
Total non-current assets 167,410 70,137 168,437
-------- -------- -------
Current assets
Trade and other receivables 44,447 12,979 46,800
Cash and cash equivalents 9,640 23,484 10,278
-------- -------- -------
Total current assets 54,087 36,463 57,078
-------- -------- -------
Total assets 221,497 106,600 225,515
-------- -------- -------
Current liabilities
Borrowings (17,287) - (14,792)
Trade and other payables (48,346) (27,056) (54,103)
Current tax liabilities (7,308) (3,915) (5,728)
-------- -------- -------
Total current liabilities (72,941) (30,971) (74,623)
-------- -------- -------
Net current (liabilities)/assets (18,854) 5,492 (17,545)
-------- -------- -------
Non-current liabilities
Borrowings (21,182) - (24,255)
Retirement benefit obligation (2,857) (6,146) (5,411)
Non-current tax liabilities (7,572) (5,294) (7,711)
Long-term provisions (757) (476) (829)
Non-current accruals (425) (480) (497)
-------- -------- -------
Total non-current liabilities (32,793) (12,396) (38,703)
-------- -------- -------
Total liabilities (105,734) (43,367) (113,326)
-------- -------- -------
Net assets 115,763 63,233 112,189
-------- -------- -------
Equity
Share capital 67,775 47,488 67,735
Share premium account 38,189 38,151 38,163
Merger reserve 32,513 5,683 32,513
Shares to be issued - 46 46
Share compensation reserve 1,225 1,133 1,492
Own shares held by employee share trust (1,296) (1,270) (1,270)
Translation reserve (6,339) (3,518) (5,161)
Other reserves 7,064 7,064 7,064
Retained earnings (23,368) (31,544) (28,393)
-------- -------- -------
Total equity 115,763 63,233 112,189
-------- -------- -------
Group cash flow statement
Six months ended 30 June 2007
Unaudited Unaudited
Six Six Audited
months months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
Note #'000 #'000 #'000
---- -------- -------- --------
Net cash from operating activities 7 4,784 5,690 (1,954)
-------- -------- --------
Investing activities
Interest received 297 442 1,013
Acquisitions of subsidiaries, net of
cash and overdrafts acquired (204) - (44,932)
Purchases of property, plant and
equipment (597) (403) (1,202)
Purchases of intangible assets (510) (1,193) (1,363)
-------- -------- --------
Net cash used in investing activities (1,014) (1,154) (46,484)
-------- -------- --------
Financing activities
Dividends paid 4 (2,667) (1,486) (1,486)
Interest paid (1,272) - -
Net (repayment of)/proceeds from
borrowings (523) - 39,009
Refinancing of acquired borrowings by
term debt
Proceeds from issue of shares 13 120 282
-------- -------- --------
Net cash (used in)/raised by financing (4,449) (1,366) 22,594
activities -------- -------- --------
Net (decrease)/increase in cash and
cash equivalents (679) 3,170 (25,844)
Cash and cash equivalents at beginning
of period 10,278 21,555 21,555
Net impact of new borrowings and - - 14,792
refinancing
Effect of foreign exchange rate changes 41 (1,241) (225)
-------- -------- --------
Cash and cash equivalents at end of 9,640 23,484 10,278
period -------- -------- --------
Notes
1. General information
The information for the year ended 31 December 2006 does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies. The auditors' report on those accounts was unqualified pursuant to
Section 235 of the Companies Act 1985 and did not contain a statement under
Section 237 (2) or (3) of that Act.
2. Significant accounting policies
(a) Basis of preparation
The interim report has been prepared using accounting policies consistent
with International Financial Reporting Standards (IFRS).
The interim report was approved by the board on 13 August 2007.
(b) Accounting policies
The accounting policies and methods of computation applied by the Group in
the interim report are consistent with those followed in the preparation of
the Group's annual financial statements for the year ended 31 December 2006.
The Group's consolidated financial statements for the year ended 31 December
2006 are available on our website www.mcgplc.com.
3. Segmental information
The Group operates in three geographical areas - North America, Europe and
Rest of the World. The following is an analysis of the revenue and results
for the period, analysed by geographic segment, the Group's primary basis of
segmentation:
Income statement
Six months ended 30 June 2007 Americas Europe Rest of World Consolidated
(Unaudited)
#'000 #'000 #'000 #'000
-------- -------- ---------- ---------
Revenue
External sales 26,723 68,669 5,147 100,539
-------- -------- ---------- ---------
Profit from operations before
acquisition integration costs,
depreciation and amortisation of
acquired intangibles 2,955 7,592 512 11,059
Amortisation of acquired
intangibles - (603) - (603)
Depreciation and other
amortisation (164) (697) (39) (900)
-------- -------- ---------- ---------
Profit from operations before
non- recurring items 2,791 6,292 473 9,556
Acquisition integration costs - (1,247) (30) (1,277)
-------- -------- ---------- ---------
Profit from operations 2,791 5,045 443 8,279
Finance costs (net) (812)
-------- -------- ---------- ---------
Profit before tax 7,467
Income tax expense (2,318)
-------- -------- ---------- ---------
Profit for the period 5,149
-------- -------- ---------- ---------
Six months ended 30 June 2006 Americas Europe Rest of World Consolidated
(Unaudited)
#'000 #'000 #'000 #'000
-------- -------- ---------- ---------
Revenue
External sales 35,935 24,552 6,856 67,343
-------- -------- ---------- ---------
Profit from operations before
release of indemnity provision,
acquisition integration costs,
depreciation and amortisation of
acquired intangibles 4,856 2,629 (325) 7,160
Amortisation of acquired - - - -
intangibles
Depreciation and other
amortisation (348) (218) (20) (586)
-------- -------- ---------- ---------
Profit/(loss) from operations
before non-recurring items 4,508 2,411 (345) 6,574
Release of indemnity
provision - - 335 335
-------- -------- ---------- ---------
Profit/(loss) from
operations 4,508 2,411 (10) 6,909
Investment income (net) 406
-------- -------- ---------- ---------
Profit before tax 7,315
Income tax expense (2,014)
-------- -------- ---------- ---------
Profit for the period 5,301
-------- -------- ---------- ---------
4. Dividends
Unaudited Audited
2007 2006
#'000 #'000
-------- --------
Amounts recognised as distributions to equity holders in
the period:
Final dividend for the year ended 31 December 2006 of
1.0p (2005: 0.8p) per share 2,667 1,486
-------- --------
Dividends are not payable on shares held in the employee share trust which has
waived its entitlement to dividends. The amount of the dividend waived in 2006
(in respect of the year ended 31 December 2006) was #42,000 (2006: #34,000). An
interim dividend of 0.33 pence per share will be paid on 22 October 2007 to
shareholders on the register on 21 September 2007.
5. Taxation
The effective tax charge for the half year is 31% (30 June 2006: 28%), based on
profit before tax. The charge includes four percentage points in respect of
deferred tax. The underlying tax rate of 27% is below the statutory rate due to
the utilisation of brought forward tax losses. Of the total tax charge, #0.2
million arises within the UK (2006: #0.2 million) and #2.1 million overseas
(2006: #1.8 million).
6. Earnings per share
From continuing operations
The calculation of earnings per share is based on the following data:
Unaudited Unaudited
Six Six Audited
months months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
#'000 #'000 #'000
-------- -------- --------
Earnings for the purposes of basic earnings
per share and diluted earnings per share
being net profit attributable to equity holder
of the parent 5,149 5,301 8,750
Amortisation of acquired intangibles 603 - 943
-------- -------- --------
Earnings for the purpose of basic earnings per
share excluding amortisation of acquired
intangibles 5,752 5,301 9,693
Non-recurring items 1,277 (335) 1,765
-------- -------- --------
Earnings for the purpose of basic earnings per
share excluding amortisation of acquired
intangibles and non-recurring items 7,029 4,966 11,458
-------- -------- --------
Number Number Number
(million)(million)(million)
-------- -------- --------
Number of shares
Weighted average number of ordinary shares for the
purposes of basic earnings per share, basic
excluding amortisation and basic excluding
amortisation and non-recurring items 266.8 185.5 212.5
Effect of dilutive potential ordinary shares:
Share options 0.8 1.5 1.3
Long-term incentive plan - 0.2 0.2
-------- -------- --------
Weighted average number of ordinary shares for the
purposes of diluted earnings per share 267.6 187.2 214.0
-------- -------- --------
Pence Pence Pence
Basic earnings per share 1.9 2.9 4.1
Diluted earnings per share 1.9 2.8 4.1
Basic - excluding amortisation of acquired
intangibles and non-recurring items 2.6 2.7 5.4
-------- -------- --------
The average share price for the six months ended 30 June 2007 was 48.3 pence (30
June 2006: 57.3 pence and 31 December 2006: 54.3 pence).
7. Notes to the cash flow statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
#'000 #'000 #'000
-------- -------- --------
Profit from operations 8,279 6,909 13,448
Adjustments for:
Depreciation of property, plant and
equipment 570 386 1,000
Amortisation of intangible assets 933 200 1,790
Loss on disposal of plant and equipment 9 - 79
Adjustment for pension funding (530) (1,235) (2,008)
Adjustment for share options charge 375 444 804
Decrease in provisions (72) (395) (493)
-------- -------- --------
Operating cash flows before movements in
working capital 9,564 6,309 14,620
Decrease/(Increase) in receivables 3,019 1,912 (6,447)
Decrease in payables (5,953) (1,429) (5,858)
-------- -------- --------
Cash generated by operations 6,630 6,792 2,315
Income taxes paid (1,846) (1,102) (4,269)
-------- -------- --------
Net cash from operating activities 4,784 5,690 (1,954)
-------- -------- --------
Cash and cash equivalents comprise cash at bank and short term deposits with a
maturity of three months or less.
This information is provided by RNS
The company news service from the London Stock Exchange
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Management Consulting (LSE:MMC)
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