Management Consulting Group on track for 2012 targets

4th Jan 2013 08:20

Management Consulting Group (MCG) said it expects revenue and profit for the 2012 financial year to be in line with expectations.In-house broker Oriel Securities has estimated revenues and profits will come in at £289m and £20.9m respectively, down from £303m and £26m the year before.The group's Alexander Proudfoot consultancy is expected to report revenues for the year as a whole similar to those reported in 2011. The firm said that division had performed well in 2012, but ongoing economic uncertainty in Europe and North America had hindered business opportunities opportunities during the second half of the year. Its Kurt Salmon consulting arm is expected to report lower revenues in 2012 compared to the previous year. The group said it was taking action to recuperate the business by restructuring practices, eliminating non-core lower margin activities and making adjustments to headcount.In the pre-close statement the group said it expected net debt was up to £30m at the end year, compared to £28.2m for the same period in 2011. Chief Executive Nick Stagg said MCG had 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," he said.The group's 2012 preliminary results will be released on 6th March.Shares were up 0.55% to 23.00p at 8:40 Friday.MM