Investors are eager to get their hands on a share of a new cash pile at Management Consulting (MMC). The sale of its remaining Kurt Salmon businesses for $165 million (about £126 million at current exchange rates) represents 107% of the group’s £117.4 million market cap, after today's 36% share price surge to 23.25p.

After an assortment of expenses the company reckons it'll net about £116 million cash, and at least some of that will get handed back to shareholders. Quite how much remains, for now, a mystery.

First it wants to bolster the balance sheet to the effect of eliminating the need for its current working capital debt facilities. It also, presumably, will need some of the lump sum to turnaround its remaining Alexander Proudfoot operating improvement arm, restoring it to profitable growth.


That will not, necessarily, be an easy task judging by interim results announced alongside the sale. The figures show underlying operating losses widening to £1.9 million from £0.4 million in the first half of 30 June.

Revenues from continuing operations are down 12% year-on-year to £25.7 million.

Management  expect revenue in the third quarter will be down again and the full-year outcome looks desperately pinned to a hoped-for rally in new business orders thereafter.

Issue Date: 22 Sep 2016