International professional services group Management Consulting Group has “significantly” cut the group’s net debt, according to a pre-close statement ahead of the announcement of the group’s 2010 preliminary results on 7 March 2011.

The group says it expects to report revenue and underlying operating profit* for the 2010 financial year in line with expectations.

The group’s net indebtedness was reduced significantly as a result of the capital raising completed in the first half of 2010 with net indebtedness at 31 December 2010 of roughly £56m, compared with £74.8m six months earlier at 30 June 2010. 

Nick Stagg, chief executive, says: “2010 was another challenging year for our businesses, but we took decisive action to improve our balance sheet through a capital raising in the first half, and we have further significantly reduced our net indebtedness from operating cash flows in the second half. 

“Alexander Proudfoot is performing well and shows encouraging signs for 2011. The merger of Ineum and KSA has been successfully completed and the business is now trading as Kurt Salmon. We look forward to realising the benefits of the merger in 2011 and beyond. With a strengthened balance sheet and a lean business model we are well placed to benefit from global economic recovery.” 

*The term ’underlying’ is defined as “before non-recurring items, the amortisation of acquired intangible assets and the impairment of acquired goodwill from continuing operations”.