Management Consulting Group PLC

Share Issue/Capital Change • Dec 2, 2016

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RNS Number : 7494Q

Management Consulting Group PLC

02 December 2016

2 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, an application has been submitted to the High Court of Justice of England and Wales (the "Court") for the proposed reduction of MCG's share capital (the "Reduction of Capital").

The application to the Court is for the share premium account of MCG to be reduced by £75 million and the amount so arising to be repaid to shareholders as a return of capital (the "Return of Capital"), and, in addition, for the deferred shares of MCG to be cancelled and the sum arising to be 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.

Should the Court approve the Reduction of Capital, it will become effective when it has been registered with the Registrar of Companies.  A further announcement will be made in due course.  Subject to the approval of the Court, the expected timetable of events is set out below.

EXPECTED TIMETABLE OF EVENTS

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

Enquiries:

For further information please contact:

MCG	Tel: +44 20 7710 5000
Nick Stagg, Chief Executive
FTI Consulting	Tel: +44 20 3727 1000
Ben Atwell

This information is provided by RNS

The company news service from the London Stock Exchange

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