Management Consulting Group expects losses in 2012

Management Consulting Group (MCG) released Friday a taste of what to expect ahead of the group's 2012 preliminary results.

Management Consulting Group (MCG) released Friday a taste of what to expect ahead of the group's 2012 preliminary results.

In a pre-close statement the international professional services group said it expects a net debt of £30m on December 31st last year compared to £28.2m for the same period in 2011.

MCG will report revenue and underlying operating profit for the 2012 financial year in line with expectations, the company said in a statement.

The firm said its subsidiary Alexander Proudfoot would report revenues for the year following strong performance in 2012. However, economic uncertainty in Europe and North America has hindered business opportunities opportunities in markets during the second half of the year.

MCG's consulting firm Kurt Salmon 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.

Nick Stagg, Chief Executive, said: "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."

The group's 2012 preliminary results will be released on March 6th.

Shares were up 0.55% to 23.00p at 8:40 Friday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020