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Pre-close Statement

Released 07:04 04-Jan-2013

RNS Number : 8293U
Management Consulting Group PLC
04 January 2013
 



 

 

 

4th January 2013

 

Management Consulting Group PLC

 

        Pre-Close Statement and Close Period Share Repurchase Programme 

 

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 2012 preliminary results on 6th March 2013.  MCG expects to report revenue and underlying operating profit* for the 2012 financial year in line with expectations.   MCG also today announces a close period share repurchase programme.

 

Alexander Proudfoot is expected to report total revenues for the year as a whole similar to those reported in 2011. Alexander Proudfoot has performed well in 2012, although continuing economic uncertainty in Europe and North America had some effect on the timing and size of opportunities in these markets in the second half of the year. 

 

Kurt Salmon's operations in North America and Asia, mainly focused on the retail and consumer goods sector, are expected to report growth in revenues in 2012.  In Europe, as expected, Kurt Salmon revenues in 2012 will be lower than the previous year.  As previously reported, the impact of Eurozone uncertainty and weak growth have affected client buying decisions, and this has been exacerbated by the impact of the relative weakening of the Euro for the year as a whole on the reported revenues in Sterling. 

 

As previously reported, we have taken action to underpin the profit performance of the Kurt Salmon business in 2012 and 2013, including restructuring certain practices, eliminating some non-core lower margin activities and making adjustments to headcount, resulting in non-recurring costs which will be reported in the full year 2012 results.  

 

Net indebtedness reported at 31 December 2012 is expected to be approximately £30m compared with £35.7m at 30 June 2012 and £28.2m at 31 December 2011. 

On 30 October MCG announced that it intended to commence a share buy-back programme to make market purchases of up to £5m of its ordinary shares over the succeeding twelve months.   Up to 31 December 2012 the Company had purchased 1,261,772 of its ordinary shares of 1 pence each at an average price of 22.49 pence per share.  MCG announces today that it will undertake an irrevocable, non-discretionary programme to purchase shares on its own behalf during the period commencing on 7 January 2013 up to and including 31 January 2013. The buy-back programme during this period will be managed by an independent third party, which makes its trading decisions in relation to the Company's securities independently of, and uninfluenced by, the Company.  Any share purchases will be effected within certain pre-set parameters, and in accordance with both the Company's general authority to repurchase shares and Chapter 12 of the Listing Rules which requires that the maximum price is an amount equal to 105 per cent of the average market value of the Company's shares for the five business days immediately preceding the date on which the Company's shares are purchased.

 

*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:

"MCG has continued to benefit from its broadly diversified business in terms of both geography and sector focus. We have seen an improved performance in North America and good progress in emerging markets, offset by lower business activity in some European markets driven by Eurozone weakness. The progress made by both Kurt Salmon and Alexander Proudfoot during 2012 demonstrates the resilience of the two businesses in this uncertain economic environment.  We will continue to focus on opportunities in our core businesses and markets in 2013."

 

 

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, Susan Stuart

 

 

 

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


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Pre-close Statement - RNS