Management Consulting Group PLC Interim Management Statement (8184R)
October 31 2013 - 3:01AM
UK Regulatory
TIDMMMC
RNS Number : 8184R
Management Consulting Group PLC
31 October 2013
31 October 2013
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 1st August
2013.
The Group's two operating divisions, Alexander Proudfoot and
Kurt Salmon, are performing towards the lower end of expectations,
although the outlook for the businesses has not changed
significantly from that reported in the Group's half-year
results.
After a weak performance in the first half of the year,
Alexander Proudfoot has continued to see a healthy order input
across all key geographies. The business is expected to deliver a
much improved performance in the second half of 2013, with revenues
likely to be broadly in line with those reported in the second half
of 2012. The order book position at this stage of the year is
encouraging, although some of the benefit from recent wins is now
likely to generate revenue in 2014 rather than 2013.
Kurt Salmon's revenue performance in the first half was affected
by continuing weakness in the French market, as previously
disclosed. We have seen recent signs that the French market has
stabilised, but we have not yet seen clear indications of a
recovery. Elsewhere, in other European countries, in North America
and in Asia the recent performance of the business has been
encouraging. The order book position for Kurt Salmon is stronger
than at the same time last year.
The Group's net debt remains at a comfortable level in relation
to our overall bank facility and covenant requirements. The normal
phasing of cash flows means that historically the second half of
the year tends to see stronger cash generation and the Board
continues to expect this to be the case in 2013.
On 30 October 2012 the Board announced a buy-back programme to
make market purchases of up to GBP5m of its ordinary shares over
the next twelve months. Up to 29 October 2013 the Company had
purchased 5,538,012 of its ordinary shares for a total
consideration of GBP1.6m. The Company announces today that it will
extend the buy-back programme for a further six month period. The
Board will keep the appropriateness of the programme under review
based on factors including market conditions and MCG's business
requirements.
Nick Stagg, Chief Executive commented:
"We expect to report an improved performance in the second half
compared with the first six months, although recent project wins
will now benefit 2014 rather than 2013. There are encouraging
aspects in the current performance of both businesses. Proudfoot's
order book position is significantly stronger now than at the start
of the year, and Kurt Salmon is seeing signs of stabilisation in
France and some growth in other core geographies. Overall the Group
continues to enjoy a strong financial position and has a healthy
order book."
For further information please contact:
Management Consulting Group Tel: +44 20 7710 5000
PLC
Nick Stagg, Chief Executive
Chris Povey, Group Finance Director
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FTI Consulting (formerly Financial Tel: +44 20 7831 3113
Dynamics)
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Ben Atwell, Victoria Foster-Mitchell
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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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