Management Consulting Group PLC Disposal of Brazil business (0985N)
May 04 2018 - 1:00AM
UK Regulatory
TIDMMMC
RNS Number : 0985N
Management Consulting Group PLC
04 May 2018
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014 (the "Market Abuse
Regulation").
4 May 2018
Management Consulting Group PLC
Disposal of Brazil business
Management Consulting Group PLC (the "Group") today announces it
has finalised an agreement to divest its Brazil business, Alexander
Proudfoot Serviços Empresariais Ltda ("APSE") to its management
team for a consideration of $80,000. Under the terms of the
agreement, the management team has acquired the entire share
capital of APSE.
As previously reported, the Group continues to work to focus on
building the core markets of Americas and Europe and Global Natural
Resources while reducing its cost base. The sale represents a
further step in the Group's strategy to transform the Proudfoot
business. The net proceeds will be applied to the Group's working
capital.
In the year ended 31 December 2017, APSE reported revenues of
GBP2.4 million and an operating loss before tax of GBP1.9 million.
The gross assets of APSE at 31 December 2017 were GBP1.2
million.
APSE is a leading provider of professional services in Brazil
and was previously part of the Americas segment of the Group.
Completion is subject to customary closing conditions, and, as
previously expected by the Board, a GBP500,000 cash advance by the
Group to increase the capital base of APSE, the re-classification
of inter-group balances to become net loans due to the Group of
GBP750,000, and the parties entering into an agreement to licence
Proudfoot's knowhow and trademarks to APSE.
Pamela Hackett, CEO of Proudfoot, commented:
"We are delighted that APSE will remain part of the Proudfoot
family through our licensing agreements, continuing to work closely
with the Group whilst developing a localised brand. 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.
"We wish the management of APSE every success in the
future".
For further information please contact:
Management Consulting Group PLC
Nick Stagg
Chairman and Chief Executive
020 7710 5000
Notes to Editors
Management Consulting Group PLC (MMC.L) provides professional
services across a wide range of industries and sectors. For further
information, visit www.mcgplc.com.
Market Abuse Regulation
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
The person responsible for arranging for the release of this
announcement on behalf of the Group is Nick Stagg, Chairman and
Chief Executive.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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