Management Consulting Group PLC Interim Management Statement (3417F)
April 23 2014 - 9:00AM
UK Regulatory
TIDMMMC
RNS Number : 3417F
Management Consulting Group PLC
23 April 2014
23 April 2014
Management Consulting Group PLC ("MCG")
Interim Management Statement
To coincide with today's Annual General Meeting, Management
Consulting Group PLC ('MCG' or 'the Group') today provides an
Interim Management Statement for the period from 1 January 2014 to
23 April 2014.
The outlook for the Group remains as reported in our Preliminary
Results Statement on 6 March 2014.
Kurt Salmon has had a good start to 2014. In France there have
been some signs of improving demand from clients, notwithstanding
continuing weakness in the macroeconomic environment. Our business
in France is also benefiting from the management action taken last
year to adjust resources to lower activity levels. We have seen
positive trends elsewhere in Europe, and in North America, and
Asia. The current order book and pipeline are encouraging at this
stage of the year.
As previously reported, Alexander Proudfoot had a slow start to
the year, and has been affected by currency headwinds. Reported
first half revenues in 2014 are expected to exceed those in the
same period last year, but will not match those reported in the
second half of 2013. The change initiatives in the Alexander
Proudfoot business that were announced in our preliminary results
statement have been well received and are being implemented as
planned, and we continue to expect the related investment to affect
margins in 2014. The order book is better than the same period last
year and there is a promising pipeline of work, however at this
stage the Board retains a cautious view on the outlook for
Alexander Proudfoot for this year as a whole.
The first half of the year is typically not cash generative as a
result of the timing of the payment of the Group's annual bonuses
from the previous financial year. As a result net indebtedness will
increase at the 2014 half year compared to the end of 2013 as in
previous years, but we do not expect to report a year on year
increase in net debt at 30 June 2014.
Subject to shareholder approval at today's Annual General
Meeting, the final dividend of 0.595 pence per share will be paid
on 2 July 2014 to shareholders on the register on 16 May.
Nick Stagg, Chief Executive, commented:
"The outlook for the Group remains as reported at the time of
our 2013 results announcement. We have had a good start to the year
in the Kurt Salmon business, reflecting some positive trends in our
French business, alongside continued progress in other geographies.
I am pleased with the progress we are making with our planned
change initiatives in Alexander Proudfoot and the commitment and
engagement from our people. Alexander Proudfoot has generated
better revenues in the first quarter of 2014 than the same period
last year, but activity levels have not yet matched those seen in
the second half of 2013, and we continue with a cautious view on
the outlook at this stage."
For further information please contact:
Management Consulting Group PLC
Nick Stagg Chief Executive 020 7710 5000
Chris Povey Finance Director 020 7710 5000
FTI Consulting
Ben Atwell 020 3727 1000
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 helps clients to
embed disciplined execution in their operations to achieve growth
targets, revenue and profit goals. 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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