London: Management Consulting Group PLC, MCG, issued an encouraging interim trading statement this week.
It says that the group's two operating divisions, Alexander Proudfoot and Kurt Salmon, are performing in line with expectations.
"Alexander Proudfoot has continued to benefit from demand from clients in the natural resources sector, and those with operations in emerging markets. The projects undertaken during 2011 have, on average, been larger than those undertaken in previous years, and the timing of the execution of some of these projects during 2011 have been slightly skewed towards the first half. Alexander Proudfoot is expected to report significant growth in revenues in 2011 compared with 2010", the statement says.
"Kurt Salmon operates across a number of different geographies and industry verticals and is therefore subject to a range of factors in relation to client demand for its services. Kurt Salmon's performance reflects its strong position in its core markets, in particular in the larger operations in the United States and Continental Europe. The retail consulting practice has shown encouraging growth during the year, and the financial services consulting practice is developing according to plan. Management continues to focus on developing the core offerings and markets, and on improving operational efficiency and profitability alongside investment to drive growth for the future", it adds.
Order books at both Alexander Proudfoot and Kurt Salmon are higher than average order book levels in 2009 and 2010. The new business pipeline for both businesses remains encouraging.
Nick Stagg, Chief Executive commented: "MCG has a broadly diversified business in terms of both geography and sector focus. Both Kurt Salmon and Alexander Proudfoot have continued to make good progress during the year in what remains an uncertain broader economic environment. Alexander Proudfoot has benefitted from increased demand from its natural resources clients and its profile in emerging markets. Kurt Salmon has a strong position in its core markets, particularly the US and Continental Europe."
At the half year MCG reported operating profit up 22% to £13.7 million on revenue up 19% to £155.6 million.