Interim Management Statement (7527Q)

TIDMMMC

RNS Number : 7527Q

Management Consulting Group PLC

25 October 2011

Management Consulting Group PLC

Interim Management Statement

Management Consulting Group PLC ("MCG" or "the Group"), the international professional services group, today provides an Interim Management Statement with an update on progress in its business since reporting its half-year results on 1 August 2011.

The Group's two operating divisions, Alexander Proudfoot and Kurt Salmon, are performing in line with expectations.

Alexander Proudfoot has continued to benefit from demand from clients in the natural resources sector, and those with operations in emerging markets. The projects undertaken during 2011 have, on average, been larger than those undertaken in previous years, and the timing of the execution of some of these projects during 2011 have been slightly skewed towards the first half. Alexander Proudfoot is expected to report significant growth in revenues in 2011 compared with 2010.

Kurt Salmon operates across a number of different geographies and industry verticals and is therefore subject to a range of factors in relation to client demand for its services. Kurt Salmon's performance reflects its strong position in its core markets, in particular in the larger operations in the United States and Continental Europe. The retail consulting practice has shown encouraging growth during the year, and the financial services consulting practice is developing according to plan. Management continues to focus on developing the core offerings and markets, and on improving operational efficiency and profitability alongside investment to drive growth for the future.

The order books of Alexander Proudfoot and Kurt Salmon are higher than average order book levels in 2009 and 2010. The new business pipeline for both businesses remains encouraging.

Since 30 June 2011 0.9 million further warrants issued in the capital raising of June 2010 have been converted into Ordinary Shares in MCG at an exercise price of 22 pence. As at 21 October 2011 45.8 million warrants remained outstanding. In the event that all these outstanding warrants are converted before they lapse on 31 December 2011 the further cash proceeds payable to MCG will be GBP10.1 million. BlueGem Capital Partners LLP has informed the Company that it intends to convert the 35.3 million warrants which it holds.

Nick Stagg, Chief Executive commented:

"MCG has a broadly diversified business in terms of both geography and sector focus. Both Kurt Salmon and Alexander Proudfoot have continued to make good progress during the year in what remains an uncertain broader economic environment. Alexander Proudfoot has benefitted from increased demand from its natural resources clients and its profile in emerging markets. Kurt Salmon has a strong position in its core markets, particularly the US and Continental Europe."

For further information please contact:

 
 Management Consulting Group PLC        Tel: +44 20 7710 5000 
 Nick Stagg, Chief Executive 
  Chris Povey, Group Finance Director 
 
 
  FTI Consulting                         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 two independently managed practices: Alexander Proudfoot and Kurt Salmon. Alexander Proudfoot develops and implements operational improvements to its clients to increase productivity and reduce costs. Kurt Salmon provides consultancy services to a wide range of industries in both the private and public sectors. 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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