27th Apr 2020 14:11
(Alliance News) - Management Consulting Group PLC on Monday reported improved results for 2019 as it said it is considering delisting its shares in efforts to conserve cash.
Shares in the professional services firm were down 4.3% at 0.68 pence each on Monday afternoon in London.
For 2019, Management Consulting posted a pretax loss of GBP5.7 million, narrowing from a loss of GBP6.9 million recorded in 2018. Revenue was 17% higher at GBP33.2 million from GBP28.3 million. Administrative expenses were lower at GBP20.9 million, compared to GBP20.7 million the year prior.
No dividend was declared, unchanged from 2018.
The company said the revenue growth was achieved by maintaining growth in Europe, further wins in the Natural Resource market and continued investment in sales & marketing.
By sector, revenue from the Natural Resources sector represented 49% of total group revenues. Geographically, revenues from clients in the EMEA region accounted for 64% of total group revenue, the Americas region represented 31% and Asia represented 5%.
Looking ahead, Management Consulting said it expects the Covid-19 outbreak to hurt its revenues. It added that in efforts to conserve cash, it is considering delisting its shares from trading on the main market of the London Stock Exchange. It highlighted that delisting would result in annual savings of around GBP400,000.
The company also added that it may need to seek additional funding in the event the pandemic wreaks more havoc on the business than expected.
"The increase in revenue during 2019 was very pleasing, however the start of 2020 has clearly been very challenging due to the impact of the Covid-19 pandemic. The board believes that the business will be best served in an unlisted environment, especially in the aftermath of the business interruption caused by Covid-19 and we will be writing to shareholders further on this in the near future," said Chair & Chief Executive Nick Stagg.
By Ife Taiwo; [email protected]
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