Management Consulting Group gives FY08 underlying EPS, revenue view - Update
1/8/2009 4:19 AM ET
(RTTNews) -
Thursday, Management Consulting Group (MMC.L: News ) in its pre-close period trading update, said it expects full-year 2008 underlying earnings to be around 6.2 pence per share, flat with last year, on revenues of GBP 335 million - GBP 340 million.
Management Consulting noted that the 2008 results include the full-year benefits of the acquisitions of CBH Consulting and Kurt Salmon Associates.
Further, the group forecasts fiscal 2008 underlying operating profit to be between GBP 34 million and GBP 35 million.
For the year, the group anticipates amortisation of acquired intangible assets to be about GBP 2.3 million and impairment of acquired intangible assets about GBP 27.5 million.
During the year, the group said a comprehensive review of non-client facing costs has been completed and that it would withdraw from around a dozen properties and downsize a further five. The stake in the Salzer Consulting joint venture has been sold back to the JV partners. As a result of these initiatives, the company expects a non-recurring charge between GBP 19 million and GBP 20 million.
The group said it benefited from having counter-cyclical products in its broadening range that help it to offset variances in economic cycles in different industries and geographies. The consulting group completed its refocusing of the business back to its core strengths and ended 2008 with a stronger order book than at the beginning of the year.
Moving ahead, the group noted that around 5% of its revenue is currently invoiced in Sterling, and if the current weakness of this currency continues, this would imply a positive translational effect for the 2009 results.
Management Consulting stated that its net debt figure at the end of 2008 benefited from strong cash generation and is expected to be around GBP 12 million lower than its equivalent at the end of 2007 at constant exchange rates. While on a reported basis, the group said the position would be inflated by the current strength of these currencies to around GBP 67 million, which is comfortably within the covenant limits of its borrowing facility.
MMC.L closed Wednesday's trading session at 22.00 pence, down 2.22%.
by RTT Staff Writer
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