Kurt Salmon Update (2407Y)
December 20 2010 - 2:00AM
UK Regulatory
TIDMMMC
RNS Number : 2407Y
Management Consulting Group PLC
20 December 2010
20 December 2010
Management Consulting Group PLC
Update on Kurt Salmon merger and review of cost base
Management Consulting Group PLC ("MCG" or "the Group"), the
international professional services group, today announces an
update on the merger of Ineum Consulting and Kurt Salmon
Associates, and management's review of the Group's cost base.
As previously announced, the merger of Ineum Consulting and Kurt
Salmon Associates will formally take effect from 1 January 2011,
and the combined business will trade as Kurt Salmon from that
date.
Management has previously noted that it intended to review the
Group's cost base during 2010. MCG is pleased to confirm that this
review has been completed and that actions have been taken which
are expected to deliver annual cost savings, principally in back
office operations, of approximately GBP5 million starting in
2011.
These savings partly relate to the merger of Ineum Consulting
and Kurt Salmon Associates but also reflect initiatives at the
Group's Head Office in London. The financial benefits of the cost
savings will be reflected in 2011, but will be offset by investment
in organic growth in the merged Kurt Salmon business which is
designed to drive revenue growth and profitability in 2011 and
beyond. The one-off costs related to achieving the cost savings
will be charged as non-recurring items in 2010. For the year as a
whole, the Group expects to report net non-recurring expenses in
the range of GBP2.8 million to GBP3.3 million.
Nick Stagg, Chief Executive commented:
"These savings reflect MCG's commitment to reducing business
overheads and to reallocating funds to drive organic growth and
future profitability. The merger between Ineum and KSA is going to
plan and we look forward to leveraging the expected synergies and
new business opportunities from the combined business in 2011 and
beyond."
For further information please contact:
Management Consulting Group PLC Tel: +44 20 7710 5000
Nick Stagg, Chief Executive
Chris Povey, Group Finance Director
Financial Dynamics Tel: +44 20 7831 3113
Ben Atwell, Susan Quigley
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
MSCMMMMZRLKGGZM
Management Consulting (LSE:MMC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Management Consulting (LSE:MMC)
Historical Stock Chart
From Jul 2023 to Jul 2024