5th Mar 2015 10:22
LONDON (Alliance News) - Management Consulting Group PLC on Thursday said its pretax profit in 2014 plunged as revenue was held back by sterling strength.
The professional services company said its pretax profit fell to GBP4.9 million from GBP14 million a year earlier, with revenue falling to GBP242.8 million from GBP257.3 million, hit by what the group called "significant currency headwinds". The company derives 96% of its revenue from outside the UK. Revenue was flat at constant rates.
The performance of the company's two operating subsidiaries, Alexander Proudfoot and Kurt Salmon, diverged over the year. Alexander Proudfoot revenue fell 4% in constant currencies as an expected improvement in performance in the second half failed to materialise.
Kurt Salmon revenue increased 4% in constant currencies, boosted by a strong performance in its North American business which offset weakness in its key French market.
The company has proposed a final dividend of 0.595 pence per share, giving it a flat 0.825 pence total dividend.
"The group's reported results in 2014 reflect the impact of strong currency headwinds and a year of planned change and weak revenues in Alexander Proudfoot," Chief Executive Nick Stagg said.
"We have had a good start to 2015 in Kurt Salmon and we expect the trends seen in that business in 2014 to continue this year. We will continue to invest in the Alexander Proudfoot business and develop the operating model to improve its longer term performance," Stagg added.
Shares in Management Consulting were flat at 15.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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