Management Consulting Group 2013 revenue to miss expectations

15th Jan 2014 15:19

Management Consulting Group's (MCG) shares slipped after the professional services firm said it expects to report 2013 revenue and underlying operating profit slightly below forecasts. The company's management and strategy consulting business Kurt Salmon has been hurt by weak demand in France, its biggest market. Last year management took action to align resources in the French business to address failing revenue. MCG said in recent months there has been some evidence that market conditions in France have stabilised. Revenue in Kurt Salmon's operations in North America and Asia are expected to rise ahead of the prior year.The group's UK consultancy Alexander Proudfoot is tipped to report total revenues for the second half of the year at a similar level to 2012, with an improved operating profit margin. However, the year-end order book position is lower than at the 2013 half-year stage, and the rate of order intake will need to increase in the first quarter of 2014 in order to deliver material revenue growth and margin improvement for 2014.As a result the group is cautious on the outlook for Alexander Proudfoot as it starts the new financial year.Net indebtedness is expected to be £40m compared at the end of December 2013, compared to £51.7m at June 30th and and £30.3m at December 31st 2012. Shares dropped 4.85% to 24.50p at 15:48 on Wednesday. RD