London: Management Consulting Group PLC, MCG, says it will meet market expectations on revenue and underlying operating profit when it reports full year financial results in March, and has cut debt significantly in the last year.
In a pre-close statement, the quoted holding company said that its two operating practices had made progress. "Alexander Proudfoot has continued to benefit from demand from clients in the natural resources sector, and those with operations in emerging markets, and will report significant growth in revenues in 2011 compared with 2010. Kurt Salmon has delivered an encouraging performance for the year in its core markets. Kurt Salmon has extended its operations to the Chinese market with the acquisition which was announced in October 2011 and the acquired business is performing well", it said.
Since the end of 2010 MCG has raised approximately £11 million in cash from shareholders. As well as the cash inflows from the warrant exercises, the group said operational cash generation been a key focus and as a result there has been a significant reduction in net indebtedness during the year. Net indebtedness at 31 December 2011 is expected to be approximately £31 million compared with £54.4 million at 31 December 2010. The Group has recently refinanced its borrowing facilities and now has in place an £85 million revolver facility until July 2016.
Nick Stagg, Chief Executive commented, "Both Kurt Salmon and Alexander Proudfoot have made good progress during 2011, despite continuing economic uncertainty. The Group has generated strong cash flows during the year, further reducing its indebtedness, and is in a strong financial position. MCG will continue to benefit from its broadly diversified business in terms of both geography and sector focus."