23 Apr 2014 14:00
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
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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.