31 Oct 2013 07:00
31 October 2013
Management Consulting Group PLC
Interim Management Statement
Management Consulting Group PLC ("MCG" or "the Group"), the international professional services group, today provides an Interim Management Statement with an update on progress in its business since reporting its half-year results on 1st August 2013.
The Group's two operating divisions, Alexander Proudfoot and Kurt Salmon, are performing towards the lower end of expectations, although the outlook for the businesses has not changed significantly from that reported in the Group's half-year results.
After a weak performance in the first half of the year, Alexander Proudfoot has continued to see a healthy order input across all key geographies. The business is expected to deliver a much improved performance in the second half of 2013, with revenues likely to be broadly in line with those reported in the second half of 2012. The order book position at this stage of the year is encouraging, although some of the benefit from recent wins is now likely to generate revenue in 2014 rather than 2013.
Kurt Salmon's revenue performance in the first half was affected by continuing weakness in the French market, as previously disclosed. We have seen recent signs that the French market has stabilised, but we have not yet seen clear indications of a recovery. Elsewhere, in other European countries, in North America and in Asia the recent performance of the business has been encouraging. The order book position for Kurt Salmon is stronger than at the same time last year.
The Group's net debt remains at a comfortable level in relation to our overall bank facility and covenant requirements. The normal phasing of cash flows means that historically the second half of the year tends to see stronger cash generation and the Board continues to expect this to be the case in 2013.
On 30 October 2012 the Board announced a buy-back programme to make market purchases of up to £5m of its ordinary shares over the next twelve months. Up to 29 October 2013 the Company had purchased 5,538,012 of its ordinary shares for a total consideration of £1.6m. The Company announces today that it will extend the buy-back programme for a further six month period. The Board will keep the appropriateness of the programme under review based on factors including market conditions and MCG's business requirements.
Nick Stagg, Chief Executive commented:
"We expect to report an improved performance in the second half compared with the first six months, although recent project wins will now benefit 2014 rather than 2013. There are encouraging aspects in the current performance of both businesses. Proudfoot's order book position is significantly stronger now than at the start of the year, and Kurt Salmon is seeing signs of stabilisation in France and some growth in other core geographies. Overall the Group continues to enjoy a strong financial position and has a healthy order book."
For further information please contact:
Management Consulting Group PLC | Tel: +44 20 7710 5000 |
Nick Stagg, Chief Executive Chris Povey, Group Finance Director | |
FTI Consulting (formerly Financial Dynamics) | Tel: +44 20 7831 3113 |
Ben Atwell, Victoria Foster-Mitchell |
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 develops and implements operational improvements to its clients to increase productivity and reduce costs. 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.