MMC.L Regulatory News (MMC)

26 Apr 2007 10:02

Management Consulting Group PLC26 April 2007 Management Consulting Group PLC AGM Trading Update Group revenue for the first half of the year is anticipated, on a like for likebasis, to be in line with last year. The trend of revenue progression isencouraging as work won is running solidly ahead of revenue delivered. The US dollar and Euro have depreciated by 21 cents and 4 cents respectivelyagainst Sterling compared with the comparable period of last year. The vastmajority of our revenue is billed in these two currencies. Consequently, thereported revenue is adversely impacted by the translation effect. Every 1 UScent change in the average exchange rate impacts revenue and profit by £0.4million and £0.1 million per annum respectively. Every 1 Euro cent change in theaverage exchange rate impacts revenue and profit by £0.8m and £0.1 million perannum respectively. Ineum Consulting's integration into the Group has progressed well. It isproviding a new dimension to the Group's offerings that the market demands.Trading has been strong and is well ahead of the same (pre-acquisition) periodof last year. In particular, the financial and manufacturing sectors have grownwell and there have been large wins in the public sector. Ineum Consulting'sprospects are robust. Parson Consulting continues to lack good visibility which makes the outcome forthe year difficult to predict. Investment in people has continued in the UnitedStates which remains below scale. The stronger European businesses have had asolid start to the year and are showing good pipelines of new work. Proudfoot Consulting's work won since the beginning of the year materiallyexceeds revenue delivered in the same period and includes a substantial newengagement win, new clients and a good volume of repeat work. As anticipated,Proudfoot Consulting's revenue for the first half will be in line with thesecond half of last year and the short term costs associated with developing thenew work streams will reverse as the year progresses. In accordance with the plans for its development, Salzer Consulting's revenuehas grown substantially at a break even level of profitability. All of our consultancies are working closely together and we are seeing thebenefits of a greater diversity of service offerings to address market demands. As usual, April is too early in the year to comment on the outcome for the yearas a whole, but the strong growth in our order book reported at the time of thepreliminary announcement in March of this year has continued and the directorsremain confident that the Group will show good progress in 2007. For further information please contact: Management Consulting Group PLC Kevin Parry, Chief Executive 020 7710 5000 Maitland Suzanne Bartch 020 7379 5151 Peter Ogden Notes to Editors Management Consulting Group PLC (MMC.L) is an umbrella organisation for adiverse range of consulting and professional services offerings. It operatesthrough four divisions: Ineum Consulting, Parson Consulting, ProudfootConsulting and Salzer Consulting. Ineum Consulting provides consulting serviceswith industry expertise. Parson Consulting specialises in financial managementconsulting. Proudfoot Consulting specialises in operational improvementconsulting and Salzer Consulting specialises in starting, managing andrestructuring business in Asian markets. The businesses operate worldwide. Forfurther information, visit www.mcgplc.com. This information is provided by RNS The company news service from the London Stock Exchange