Management Consulting issues profit warning

Management Consulting said revenue and underlying profit for the year will be below the same period last year and also warned full year figures could miss expectations.The group's revenue from continuing operations for the six-month period ended 30 June 2009 is estimated to be in the range of £150m to £160m (2008: £166.7m). Underlying operating profit is expected to be in the range of £11.5m to £12.5m (2008: £15.1m). The recent strengthening of sterling will, if it continues, adversely affect the reported revenue and profit of the group for the full year but will reduce net debt.The second half of 2009 is also up against tough comparatives last year and will start the period with an order book about ten percent lower than twelve months ago. "As usual for MCG, visibility of this order book remains limited to three to four months and so forecasting results for the full year remains difficult although, given the above factors, the Board recognises that the Group may come in below market consensus for 2009," said the group.Management of MCG has been restructuring the business to mitigate the effects of the economic downturn. Cost cutting measures have been initiated, which will see the number of people employed in the group down around 300, or 14%, from the number at the end of 2008. The majority of this reduction has occurred in the US.