4 May 2018 07:00
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014 (the "Market Abuse Regulation").
4 May 2018
Management Consulting Group PLC
Disposal of Brazil business
Management Consulting Group PLC (the "Group") today announces it has finalised an agreement to divest its Brazil business, Alexander Proudfoot Serviços Empresariais Ltda ("APSE") to its management team for a consideration of $80,000. Under the terms of the agreement, the management team has acquired the entire share capital of APSE.
As previously reported, the Group continues to work to focus on building the core markets of Americas and Europe and Global Natural Resources while reducing its cost base. The sale represents a further step in the Group's strategy to transform the Proudfoot business. The net proceeds will be applied to the Group's working capital.
In the year ended 31 December 2017, APSE reported revenues of £2.4 million and an operating loss before tax of £1.9 million. The gross assets of APSE at 31 December 2017 were £1.2 million.
APSE is a leading provider of professional services in Brazil and was previously part of the Americas segment of the Group.
Completion is subject to customary closing conditions, and, as previously expected by the Board, a £500,000 cash advance by the Group to increase the capital base of APSE, the re-classification of inter-group balances to become net loans due to the Group of £750,000, and the parties entering into an agreement to licence Proudfoot's knowhow and trademarks to APSE.
Pamela Hackett, CEO of Proudfoot, commented:
"We are delighted that APSE will remain part of the Proudfoot family through our licensing agreements, continuing to work closely with the Group whilst developing a localised brand. The divestment allows the Group to continue its focus on Proudfoot's core markets, executing against the 'new Proudfoot' model; a strategy of sector focus and deep subject matter expertise.
"We wish the management of APSE every success in the future".
For further information please contact:
Management Consulting Group PLC
Nick Stagg
Chairman and Chief Executive
020 7710 5000
Notes to Editors
Management Consulting Group PLC (MMC.L) provides professional services across a wide range of industries and sectors. For further information, visit www.mcgplc.com.
Market Abuse Regulation
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.
The person responsible for arranging for the release of this announcement on behalf of the Group is Nick Stagg, Chairman and Chief Executive.