Management Consulting Group PLC Pre-close statement (4396L)
July 04 2014 - 2:00AM
UK Regulatory
TIDMMMC
RNS Number : 4396L
Management Consulting Group PLC
04 July 2014
4 July 2014
Management Consulting Group PLC ("MCG")
Pre-close statement
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
interim results on 31 July 2014.
The outlook for the business for the year as a whole remains
broadly as reported in our Preliminary Results statement on 6 March
2014. The strengthening of Sterling in 2014 versus 2013 is expected
to result in the Group overall reporting first half revenues at a
similar level to the first half of 2013, although on a constant
currency basis both Alexander Proudfoot and Kurt Salmon have
increased revenues. With over a third of our revenues derived from
US Dollars and around half our revenues generated in Euros, our
reported numbers are influenced by currency translation.
Kurt Salmon had a good start to 2014 and this continued into the
second quarter. In our French business revenue levels have
stabilised and margins have benefited from the management action
taken last year to adjust resources to lower activity levels in
2013. We have seen positive underlying trends in revenue elsewhere
in Europe and in North America. 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 slightly exceed those
in the same period last year, but will not match those reported in
the second half of 2013. We are making good progress with the
change initiatives in the Alexander Proudfoot business that were
announced earlier this year, but as expected these have adversely
affected profitability in the first half of 2014. Good recent order
input means that the order book is currently higher than it was at
the same time last year, however at this stage the Board retains a
cautious view on the outlook for Alexander Proudfoot for 2014 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 has
increased at the 2014 half year compared to the end of 2013, as in
previous years. Reported net debt at the half year is likely to be
approximately GBP48m. The Group continues to focus on operational
cash generation to further reduce net indebtedness over the course
of the current financial year.
The final dividend of 0.595 pence per share was paid on 2 July
2014 to shareholders on the register on 16 May.
Nick Stagg, Chief Executive, commented:
"The underlying outlook for the Group remains broadly unchanged
from the time of our 2013 results announcement, although the
negative impact of currency headwinds on our reported results has
heightened as Sterling has strengthened further. We have seen
positive underlying revenue trends in the Kurt Salmon business and
the benefits of the management action taken in 2013. We are making
progress with our planned change initiatives in Alexander Proudfoot
but in the short term, as expected, these will adversely affect our
margins. Alexander Proudfoot has generated better revenues in the
first half 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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