Management Consulting Group PLC Pre-close Statement (8293U)
January 04 2013 - 2:05AM
UK Regulatory
TIDMMMC
RNS Number : 8293U
Management Consulting Group PLC
04 January 2013
4(th) January 2013
Management Consulting Group PLC
Pre-Close Statement and Close Period Share Repurchase
Programme
Management Consulting Group PLC ("MCG" or "the Group"), the
international professional services group, today announces a
pre-close statement ahead of the announcement of the Group's 2012
preliminary results on 6th March 2013. MCG expects to report
revenue and underlying operating profit* for the 2012 financial
year in line with
expectations. MCG also today announces a close period share repurchase programme.
Alexander Proudfoot is expected to report total revenues for the
year as a whole similar to those reported in 2011. Alexander
Proudfoot has performed well in 2012, although continuing economic
uncertainty in Europe and North America had some effect on the
timing and size of opportunities in these markets in the second
half of the year.
Kurt Salmon's operations in North America and Asia, mainly
focused on the retail and consumer goods sector, are expected to
report growth in revenues in 2012. In Europe, as expected, Kurt
Salmon revenues in 2012 will be lower than the previous year. As
previously reported, the impact of Eurozone uncertainty and weak
growth have affected client buying decisions, and this has been
exacerbated by the impact of the relative weakening of the Euro for
the year as a whole on the reported revenues in Sterling.
As previously reported, we have taken action to underpin the
profit performance of the Kurt Salmon business in 2012 and 2013,
including restructuring certain practices, eliminating some
non-core lower margin activities and making adjustments to
headcount, resulting in non-recurring costs which will be reported
in the full year 2012 results.
Net indebtedness reported at 31 December 2012 is expected to be
approximately GBP30m compared with GBP35.7m at 30 June 2012 and
GBP28.2m at 31 December 2011.
On 30 October MCG announced that it intended to commence a share
buy-back programme to make market purchases of up to GBP5m of its
ordinary shares over the succeeding twelve months. Up to 31
December 2012 the Company had purchased 1,261,772 of its ordinary
shares of 1 pence each at an average price of 22.49 pence per
share. MCG announces today that it will undertake an irrevocable,
non-discretionary programme to purchase shares on its own behalf
during the period commencing on 7 January 2013 up to and including
31 January 2013. The buy-back programme during this period will be
managed by an independent third party, which makes its trading
decisions in relation to the Company's securities independently of,
and uninfluenced by, the Company. Any share purchases will be
effected within certain pre-set parameters, and in accordance with
both the Company's general authority to repurchase shares and
Chapter 12 of the Listing Rules which requires that the maximum
price is an amount equal to 105 per cent of the average market
value of the Company's shares for the five business days
immediately preceding the date on which the Company's shares are
purchased.
*The term 'underlying' is defined as "before non-recurring
items, the amortisation of acquired intangible assets and the
impairment of acquired goodwill from continuing operations".
Nick Stagg, Chief Executive commented:
"MCG has continued to benefit from its broadly diversified
business in terms of both geography and sector focus. We have seen
an improved performance in North America and good progress in
emerging markets, offset by lower business activity in some
European markets driven by Eurozone weakness. The progress made by
both Kurt Salmon and Alexander Proudfoot during 2012 demonstrates
the resilience of the two businesses in this uncertain economic
environment. We will continue to focus on opportunities in our core
businesses and markets in 2013."
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 (formerly Financial Tel: +44 20 7831 3113
Dynamics)
Ben Atwell, Susan Stuart
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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