22nd Apr 2015 09:11
LONDON (Alliance News) - Management Consulting Group PLC on Wednesday said its outlook for the year remains unchanged as it said its Kurt Salmon business performed well in the first few months of 2015 and said its Alexander Proudfoot arm traded satisfactorily.
The professional services company said its Kurt Salmon business has traded well in the year to date, with stable revenue in its French business and signs of further improvement emerging, along with good performances in its financial services and retail consulting units in Europe. The division is performing well in North America and said its order book looks broadly flat year-on-year.
The Alexander Proudfoot business has had a "satisfactory" start to the year, Management Consulting said, though it said the rate of order input for the business will need to improve to meet expectations for the year. The current order book in the division is lower than at the same stage a year earlier, and the group said profitability will take a hit from the ongoing restructuring of the business. It is retaining a cautious outlook for Alexander Proudfoot for the year.
The company issued a profit warning last year due to the weak performance of the Alexander Proudfoot unit, hit by the postponement of significant client projects in both 2014 and 2015 in North America.
The group also said that the first half of the year is not normally cash generative due to the timing of the group's annual bonus payments from the previous financial year. As a result, it expects its net indebtedness to rise in the first half.
Shares in the company were down 2.4% to 15.50 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
MMC.L