1st May 2018 11:38
LONDON (Alliance News) - Management Consulting Group PLC on Tuesday posted a narrowed loss for 2017 due to reduced expenses and despite lower revenue amid weak performance in North America.
The professional services provider said its pretax loss narrowed significantly to GBP26.3 million for 2017, compared with a GBP40.8 million loss the prior year.
Management Consulting reduced its administrative expenses year-on-year to GBP42.3 million from GBP61.0 million, while finance costs were cut to GBP719,000 from GBP1.2 million.
At the start of 2017, the company said it recognised the need to focus on continued change in Proudfoot business. It changed the structure, sales model and introduced new additional services during the course of the year.
Revenue came in 22% lower at GBP35.1 million versus GBP45.2 million the year before, due to the weak second half trading, especially in North American region, which represents about 44% of total revenue.
Revenue from clients in North America fell to GBP12.2 million from GBP15.3 million the year before, while revenue from European-based clients was 11% ahead of the prior year with significant repeat business.
"Proudfoot continues to deliver value to clients and remains a distinctive and recognised brand and is an established global operator in key sectors. It needs additional change and investment in order to further the transformation we started in 2017 and start to create value for shareholders," said Chief executive Nick Stagg.
"We will look to raise additional finance to ensure that we can complete the changes in Proudfoot and deliver value to shareholders," Stagg added.
Shares in Management Consulting were trading 21% lower at 3.00 pence per share on Tuesday.
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