20th Sep 2019 13:07
(Alliance News) - Management Consulting Group PLC on Friday reported a narrowed interim loss as the company continues its strategy change.
In the six months to June 30, Management Consulting Group narrowed its pretax loss to GBP2.4 million from GBP4.8 million the year before.
Revenue jumped 25% to GBP17.3 million from GBP13.8 million the year before.
"Revenues for the first half of 2019 are well ahead of the same period in 2018 and also the second half of 2018. This, and a significantly increased level of contract wins in the period, are encouraging and demonstrate the strategic investments to be delivering the anticipated upsides," said Chief Executive Nick Stagg.
Management Consulting Group said its focus in the first half was its continued investment in operations consulting subsidiary Proudfoot.
Stagg continued: "We have substantially cut costs in the last 18 months and have re-invested part of the savings in new resources at Proudfoot. Although the business is still trading at a loss, we are confident that the strength of the Proudfoot brand as a transformation leader across attractive verticals will deliver further operational and financial improvements."
Administrative expenses declined 13% to GBP10.0 million from GBP11.5 million the year before.
Management Consulting Group said its strategy change has resulted in GBP17.0 million in signed orders and contracts, 49% higher than the GBP11.4 million signed last year,
"Natural Resources, particularly in the EMEA regions, along with European Industrials, continue to provide the foundation for revenues in Proudfoot. The introduction of Maintenance & Repair Operations in the US, as per the firm's 2018-2020 strategy, has developed from start-up to now generating revenues in the period, demonstrating the Proudfoot brand's ability to extend into new verticals and providing revenue diversification," the company added.
Management Consulting Group did not declare an interim, unchanged from the year before.
Shares in Management Consulting Group were untraded in London on Friday, last closing at 1.69 pence each.