London: The UK's Management Consulting Group PLC reported what it described as a "resilient performance in difficult market conditions" this week, with 2012 profit and revenue both down.
- Revenues of £285.8m (2011: £302.6m); approximately 2% lower on a constant currency basis
- Underlying operating profit of £25.7m (2011: £28.3m). Underlying operating profit margin broadly flat at 9% (2011: 9%)
- Operating profit of £18.2m, down 29% (2011: £25.5m)
- Good performance from Alexander Proudfoot, delivering improved profitability
- Mixed performance from Kurt Salmon, with further progress in the US and Asia offset by weaker activity in European markets
Nick Stagg, Chief Executive, commented, "The Group delivered a resilient performance for 2012 in difficult market conditions. Alexander Proudfoot reported a good result, with revenue growth in markets outside Europe and an improvement in margin. Kurt Salmon increased revenues in North America and Asia, but the business was affected by weakness in Europe, and the weaker Euro in 2012 reduced reported revenues in Sterling.
"Whilst we expect some of the Group's more established markets to remain challenging during 2013, MCG is well placed to take advantage of opportunities in markets and sectors which continue to grow. The Group's strong financial position, its geographic balance, sector focus and strong client relationships provide a solid foundation for success. The Board will continue to focus on promoting profitable growth and improving returns to shareholders."
A detailed breakdown of MCG's performance and a statement by Chairman Alan Barber are here.