Management Consulting Group to buy back shares

Professional services firm Management Consulting Group rose strongly after announcing a share buy-back programme.

The firm plans to make market purchases of up to £5m of its ordinary shares over the next twelve months.

In June the company said its share price did not reflect the underlying value of the business and that if this 'undervaluation' continued, it would consider using some of its cash for share buy-backs.

"In recent months the market price of MCG's shares has persisted at a level which the board believes does not properly reflect the value of the business and accordingly the board has concluded that it is now appropriate to commence market purchases of MCG shares." its statement said.

The company also noted that in the period since the beginning of August its two operating divisions, Alexander Proudfoot and Kurt Salmon, were performing in line with expectations.

The outlook for the businesses had not changed from that reported in the group's half-year result, it added.

MGC's shares were up 4.9% at 24.25p at 14.00 following the morning's announcement.