Management Consulting Group PLC Reduction of Capital and Return of Capital update (2428R)

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RNS Number : 2428R

Management Consulting Group PLC

07 December 2016

7 December 2016

Reduction of Capital and Return of Capital update

Management Consulting Group PLC ("MCG") today announces that, further to a resolution passed by Shareholders at the general meeting convened and held on 21 October 2016, the proposed reduction of MCG's share capital (the "Reduction of Capital"), has today been approved by the High Court of Justice of England and Wales (the "Court").

The Court Order approving the Reduction of Capital has been registered with the Registrar of Companies and accordingly the Reduction of Capital has now become effective.

The share premium account of MCG has been reduced by GBP75 million and the amount so arising will be repaid to shareholders. Payment of approximately 14.673 pence per share will be made on or around 14 December 2016 as a Return of Capital.

In addition, the deferred shares of MCG have been cancelled and the sum arising, being GBP79,533,830.64, credited to MCG's profit and loss account.

Full details of the Reduction of Capital and the Return of Capital were set out in the Circular and Notice of General Meeting dated 4 October 2016, in connection with the sale of Kurt Salmon (the "Disposal"). The completion of the Disposal was announced on 2 November 2016.

The Circular also contained a description of the financial effects of the Disposal and the use of proceeds, and the current trading and future prospects of the MCG Group following the Disposal (the "Retained Group"). The Circular noted that Alexander Proudfoot comprises the sole trading operations of the Retained Group, and is currently loss making. A copy of the Circular is available on the Company's website at www.mcgplc.com/investors.

The Board expects to announce its preliminary results for the year ending 31 December 2016 in March 2017 and will provide further information on the current trading and future prospects of the Group at that stage.

EXPECTED TIMETABLE OF EVENTS

 
 Record Date for Return               6.00 p.m. on Wednesday 
  of Capital                           7 December 2016 
 Ordinary Shares commence             8.00 a.m. on Thursday 8 
  trading ex-entitlement               December 2016 
  to Return of Capital 
 Dispatch of cheques to               On or around Wednesday 
  Shareholders or Shareholders'        14 December 2016 
  CREST accounts credited 
  (as appropriate) in respect 
  of Return of Capital entitlements 
 

Enquiries:

For further information please contact:

 
 MCG                           Tel: [phone] 
 Nick Stagg, Chief Executive 
 
 FTI Consulting                Tel: [phone] 
 Ben Atwell 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 07, 2016 11:16 ET (16:16 GMT)