MMC.L Regulatory News (MMC)

5 Jan 2005 07:00

Management Consulting Group PLC05 January 2005 PRE-CLOSE TRADING UPDATE AND DIRECTORATE CHANGE Pre-close trading update Management Consulting Group PLC issues the following trading update ahead of theannouncement of the group's 2004 preliminary results on 7 March 2005. The group's revenues for the year ended 31 December 2004 are estimated to beahead of market expectations. Group revenues are estimated to have grown byapproximately 34% to £118.8 million (2003: £88.6 million). Revenues of Proudfoot Consulting are estimated to have grown by approximately19% to £81.0 million (2003: £68.2 million) and revenues of Parson Consulting areestimated to have grown by approximately 85% to £37.8 million (2003: £20.4million). Approximately 66% of the group's revenue originates in North America. Therevenue growth was achieved despite the adverse effect of the weak US dollarrelative to Sterling during 2004. At 2003 average exchange rates, revenue growthover 2003 would have been 46%. The group's operating profit is expected moderately to exceed marketexpectations, after widespread additional investment in the businesses toposition them for further growth. Taking account of the group's current order book and prospects, the directorsconsider that the group's businesses are well positioned for further growth in2005. Directorate change Stephen Purse, finance director since November 2001, will be leaving the boardafter the announcement of the 2004 preliminary results to become the financedirector of Clifford Chance Limited Liability Partnership, the world's largestlaw firm. He will be succeeded by Mark Currie, currently a partner in KPMG LLP,who will join the group by 1 March 2005. Mark Currie FCA LLB has been a partner with KPMG LLP for the past five yearswhere he was involved in providing transaction support services for globalclients and building the private equity practice. For three years prior to beinga partner, he was a transaction executive in the Principal Finance group atNomura, which followed a 12 year career at KPMG. He was awarded first prize inthe Order of Merit in the Institute of Chartered Accountants in England andWales professional examinations when he qualified as a chartered accountant in1987. There are no further details relating to the appointment of Mark Currie whichare required to be disclosed under paragraphs 6.F.2 (b) to (g) of the ListingRules of the UK Listing Authority. Rolf Stomberg, Chairman, commented: "The board is grateful to Stephen Purse for his contribution to the group sincehe became finance director and we wish him a successful career at CliffordChance. We are delighted to have secured Mark Currie as his successor and welook forward to Mark's contribution to the board." Kevin Parry, Chief Executive, commented: "I am very pleased with the revenue for 2004 particularly in the light of theweakness of the dollar. Both the Proudfoot Consulting and Parson Consultingbusinesses have performed well. In particular, the trading and momentum inParson Consulting in the second half of the year have confirmed its turn-around.This revenue growth has allowed us to invest in people and infrastructure toposition the business for future growth." For further information please contact: Management Consulting Group PLC Kevin Parry Chief Executive 020 7710 5000 (morning only) The Maitland Consultancy Michelle Jeffery 020 7379 5151 (mobile 07989 977837) Notes to editors: Management Consulting Group PLC (MMC.L) operates through two divisions: Parson Consulting and Proudfoot Consulting. Parson Consulting specialises in financialmanagement consultancy and Proudfoot Consulting specialises in operational performance improvement consultancy. The businesses operate worldwide. Further information is available at www.mcgplc.com This information is provided by RNS The company news service from the London Stock Exchange