TIDMMMC 
 
RNS Number : 4551O 
Management Consulting Group PLC 
30 June 2010 
 

30 June 2010 
 
                        Management Consulting Group PLC 
 
                                Pre-Close Update 
 
Pre-Close Update 
 
Management Consulting Group PLC ('MCG' or 'the Group') issues the following 
pre-close update ahead of the Group's 2010 interim results which are due to be 
announced on 2 August 2010. 
 
Fundraising 
 
Our fundraising of GBP25 million (GBP23.6 million net of costs) successfully 
completed earlier this month. The open offer element of this transaction was 
significantly oversubscribed and applications for excess shares had to be scaled 
back by approximately 35%. As a result Gartmore Investment Management Limited 
("Gartmore") and BlueGem Capital Partners LLP ("BlueGem"), our two largest 
institutional shareholders, allowed their allocations to be reduced in order to 
satisfy, in full, the applications by MCG staff. 
 
Trading 
 
As reported in the prospectus published in relation to the fundraising on 1 June 
2010, the climate in MCG's markets has eased from the extremely difficult 
trading conditions experienced in the middle of 2009. 
 
Alexander Proudfoot has significantly more leads for new business than at any 
stage in 2009. It has booked and is currently working on some sizeable projects 
but is finding that others in the pipeline are taking longer to come to fruition 
and pushing back revenue. We will announce further progress in due course. In 
total, input at Ineum Consulting is good. However, as previously reported, the 
performance in France, its major market, is patchy with some sectors strong and 
others weaker. Kurt Salmon Associates continues to trade more profitably than in 
2009, leveraging its reduced cost base to good effect. The merger between Ineum 
Consulting and Kurt Salmon Associates is progressing on schedule and the 
combined business will trade as "Kurt Salmon" from 1 January 2011. 
 
As a result of the GBP25 million raised in June 2010, net debt at 30 June 2010 
is expected to be in the region of GBP78 million. In line with the normal 
working capital cycle, the Group would expect to be cash generative in the 
second half of 2010. 
 
Executive Chairman Alan Barber said, "As we reported in our recent prospectus 
the Group is now better placed to take advantage of the economic recovery as it 
develops. The fundraising has reduced net debt to more sustainable levels. Our 
new Chief Executive, Nick Stagg, who takes up the reins on 1 July 2010, will 
drive an organic growth strategy and further reinforce our focus on financial 
and operational discipline. Moreover, the significant recent support for the 
oversubscribed fundraising further aligns the interests of our new and existing 
employee shareholders, Gartmore, BlueGem and our other investors and endorses 
the Board's view that the future for MCG is positive." 
 
For further information please contact: 
 
+-----------------------------------+-----------------------------------+ 
| Management Consulting Group PLC   | Tel: +44 20 7710 5000             | 
+-----------------------------------+-----------------------------------+ 
| Craig Smith, Finance Director     |                                   | 
+-----------------------------------+-----------------------------------+ 
|                                   |                                   | 
+-----------------------------------+-----------------------------------+ 
| Financial Dynamics                | Tel: +44 20 7269 7242             | 
+-----------------------------------+-----------------------------------+ 
| Ben Atwell                        |                                   | 
+-----------------------------------+-----------------------------------+ 
 
Notes to editors: 
 
Management Consulting Group PLC (MMC.L) provides professional services across a 
wide range of industries and sectors. 
 
It comprises three independently managed practices: Alexander Proudfoot; Ineum 
Consulting; and Kurt Salmon Associates. Alexander Proudfoot develops and 
implements operational improvements to its clients to increase productivity and 
reduce costs. Ineum Consulting provides consultancy services to a wide range of 
industries in both the private and public sectors. Kurt Salmon Associates 
provides consultancy services to the retail and consumer products sector and to 
the health care provider sector. The Group operates worldwide. For further 
information, visit www.mcgplc.com. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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