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.

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