4th January 2012
Management Consulting Group PLC
Pre-Close Statement
Management Consulting Group PLC ("MCG" or "the Group"), the international professional services group, today announces a pre-close statement ahead of the announcement of the Group's 2011 preliminary results on 7th March 2012.
MCG expects to report revenue and underlying operating profit* for the 2011 financial year in line with expectations. Alexander Proudfoot has continued to benefit from demand from clients in the natural resources sector, and those with operations in emerging markets, and will report significant growth in revenues in 2011 compared with 2010. Kurt Salmon has delivered an encouraging performance for the year in its core markets. Kurt Salmon has extended its operations to the Chinese market with the acquisition which was announced in October 2011 and the acquired business is performing well.
Since 31 December 2010 approximately 50 million warrants issued in the capital raising of June 2010 have been or are being converted into Ordinary Shares in MCG at an exercise price of 22 pence, providing cash proceeds to MCG of approximately £11 million.
In addition to the cash inflows from the warrant exercises, operational cash generation has continued to be a key focus for the Group and as a result there has been a significant reduction in net indebtedness during the year. Net indebtedness at 31 December 2011 is expected to be approximately £31 million compared with £54.4 million at 31 December 2010. The Group has recently refinanced its borrowing facilities and now has in place an £85 million revolver facility until July 2016.
*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".
Nick Stagg, Chief Executive commented:
"Both Kurt Salmon and Alexander Proudfoot have made good progress during 2011, despite continuing economic uncertainty. The Group has generated strong cash flows during the year, further reducing its indebtedness, and is in a strong financial position. MCG will continue to benefit from its broadly diversified business in terms of both geography and sector focus."
For further information please contact:
Management Consulting Group PLC | Tel: +44 20 7710 5000 |
Nick Stagg, Chief Executive Chris Povey, Group Finance Director | |
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FTI Consulting | Tel: +44 20 7831 3113 |
Ben Atwell, Susan Quigley | |
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.
