The sale of the French and related operations of Kurt Salmon in January 2016 has had a significant impact on the reported results for 2015. The reported results for 2015 from the Group's continuing operations, being the Kurt Salmon business which the Group has retained together with Alexander Proudfoot, are in line with the trading update provided at the time of the Circular sent to shareholders dated 30 November 2015. The weak second half performance of Alexander Proudfoot has been the principal driver of a disappointing overall result for the continuing operations of the Group. The Board remains committed to executing its plan for restoring revenue growth and profitability in Alexander Proudfoot. The retained Kurt Salmon business is primarily a leading international consulting business in the retail and consumer goods sector, together with a successful US consulting business in the healthcare sector. Both of these practices delivered a satisfactory result in 2015 with reported revenues 4.5% higher. The Disposal has enabled the Group to repay bank borrowings in full and so MCG has started the current financial year in a strong financial position.
- Reported revenues from continuing operations of £138.9m (2014*: £145.9m); approximately 4.8% lower as a result of weakness in Alexander Proudfoot
- Underlying** operating profit from continuing operations of £0.8m (2014: £7.7m) with profit of £6.1m for the retained Kurt Salmon business offset by loss of £5.3m for Alexander Proudfoot
- Sale of Kurt Salmon business in France and related geographies was completed on 7 January 2016, the Group receiving gross proceeds at completion of approximately £65.9m
- Loss from discontinued operations of £57.8m (2014: £1.1m profit)
- Retained loss for the year of £65.5m (2014: £1.0m)
- Net debt at 31 December of £52.8m (31 December 2014: £33.6m) repaid in full in January 2016 from disposal proceeds
** Throughout this statement the term 'underlying' is defined as 'before non-recurring items and amortisation of acquired intangibles.