21 Apr 2009 14:00
21 April 2009
Management Consulting Group PLC
Interim Management Statement
To coincide with today's Annual General Meeting, Management Consulting Group PLC ('MCG') today provide an Interim Management Statement for the period 1 January 2009 to 21 April 2009.
Group revenue and underlying* profit from operations for the year to date are currently ahead of the corresponding period last year. Trading in our two largest businesses, Proudfoot and Ineum Consulting (with the exception of the 'old' Parson Consulting US business), is in line with Board expectations. As disclosed with the preliminary results, Kurt Salmon Associates ('KSA') has been adversely affected by the current economic downturn in its retail and healthcare markets and these market conditions persist. As a consequence, we have continued to manage actively the cost base in this business during the period. The 'old' Parson Consulting US business has undergone further downsizing following continued weakness in demand and now comprises purely the CBH Consulting business acquired in 2007. As a result of these restructuring projects there will be a non-recurring cost of approximately £1.5m included in the 2009 first half-year results.
Net debt is currently in line with Group expectations and, at the end of the first quarter, the Group continued to trade comfortably within its banking covenant limits.
Alan Barber, Executive Chairman of MCG said: "It is encouraging that our results remain above 2008 levels at this stage of the year. Whilst economic activity was sluggish at the beginning of 2009, our order book has picked up over recent weeks. MCG has taken, and will continue to take as necessary, difficult management decisions to protect its margins and prepare the business to endure the current challenging markets."
* The term 'underlying' is defined as "before non-recurring items, the amortisation of acquired intangible assets and the impairment of acquired goodwill from continuing operations".
For further information please contact:
| Management Consulting Group PLC | Tel: +44 20 7710 5000 |
| Craig Smith, Finance Director | |
| Financial Dynamics | Tel: +44 20 7269 7242 |
| Ben Atwell |
Notes to editors:
Management Consulting Group PLC (MMC.L) is an umbrella organisation for a diverse range of consulting and professional services offerings.
MCG operates through three divisions: Ineum Consulting, Kurt Salmon Associates, and Proudfoot. Ineum Consulting provides consulting services with industry expertise. Kurt Salmon Associates provides retail and healthcare consulting. Proudfoot provides operational improvement consulting. The Group operates worldwide. For further information, visit www.mcgplc.com.