4th May 2018 12:28
LONDON (Alliance News) - Management Consulting Group PLC on Friday said it has finalised an agreement to sell its Brazil business, Alexander Proudfoot Servicos Empresariais Ltda, to its management team for USD80,000.
The consulting company said the sale represents a further step in its strategy to transform the Proudfoot business, as it continues to build core markets of Americas and Europe while reducing its cost base.
Management Consulting's Brazilian unit generated revenue of GBP2.4 million and an operating loss before tax of GBP1.9 million in 2017.
The company said the disposal is subject to customary closing conditions and a GBP500,000 cash advance by Management Consulting to increase the capital base of Alexander Proudfoot. In addition, the company will secure a loan of GBP750,000 after the re-classification of inter-group balances.
Also, the company said it intends to sign an agreement after sale to licence Proudfoot's knowhow and trademarks to Alexander Proudfoot.
"We are delighted that Alexander Proudfoot Servicos Empresariais will remain part of the Proudfoot family through our licensing agreements, continuing to work closely with the group whilst developing a localised brand," said Chief Executive Pamela Hackett.
"The divestment allows the group to continue its focus on Proudfoot's core markets, executing against the 'new Proudfoot' model; a strategy of sector focus and deep subject matter expertise," Hackett added.
Shares in Management Consulting were trading 9.5% higher at 3.00 pence each on Friday.
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