2002

PA Consulting Group announces financial results for 2001 - 04 March 2002

PA Consulting Group, the leading management, systems and technology consulting firm, today announced strong financial results in a difficult consulting climate, with group revenues increased to £400.3m (from £322.4m in 2000) and the group share price increased to 350p (from 306p in 2000). This group figure comprises revenues from PA's consulting business and its venture companies.

Underlying consulting revenues increased to £364.7m (from £296.3m in 2000, up 23%), and consulting operating profits were £69.0m (£88.7m in 2000, down 22%).

Jon Moynihan, PA's Chairman and Chief Executive, commented:

"PA remains successful and profitable. Our profits this year were hit, as expected, by the cost of the integration of our US acquisition into PA in 2001. We believe that our results represent a strong achievement in the current consulting climate, particularly when so many of our competitors have been losing money, shedding staff, imposing a moratorium on recruitment, cutting salaries and in several cases going out of business."

Highlights of financial year 2001

• Award winning at the MCA
  PA repeated its success for an unprecedented fifth year running at the Management Consultancies Association Best Management Practice Awards. PA was named Overall Winner for its work with the Swiss Government Federal Office of Transport and also won a 'highly commended' award in the Best Use of Outsourcing category for its work with the travel technology company, Sabre. Since the awards were established six years ago, PA has won more times than any other consultancy, winning over 30% of the top awards in that period.
  
• Other awards
  In addition PA's work for Clifford Chance (CliffordChanceConnect) won the Best Innovation award in the IoD's E-business Transformation Awards and our work for the Office of the e-Envoy (part of the Cabinet Office) on ukonline.gov.uk was Highly Commended in the Government Internet Forum Awards.
  
• Top employer
  PA was listed in The Sunday Times 'Best 50 companies to work for'.
  
• Ventures
  Our ventures are both the outcome and the enabler of the great client work we do. During 2001, PA launched a new venture company, Meridica, which specialises in developing innovative and market leading medical devices. Our wireless technology venture, UbiNetics, has a new CEO, Bjorn Krylander, and is meeting plan in developing proprietary capability in 3G wireless telephony, despite the downturn in the telecoms sector. UbiNetics' 2002 budget calls for the company to be in profit by the end of the year. Cubiks, our specialist HR consultancy, has grown its revenues and profits over the year, while at the same time developing significant new products.
  
• Acquisition integration
  We have successfully integrated the US-based consultancy, Hagler Bailly, into PA around the world and HB (as was) is now very much a part of PA.

Jon Moynihan concluded:

"Our ability to be profitable in these hard times is testament to PA's unrelenting focus on increasing our clients' value, measured for private sector companies as increase in shareholder return and for public sector organisations as their success in serving their stakeholders. Increasing the value of our clients and increasing PA's value are two sides of the same coin. Our clients realise that PA represents an unbiased, leading-edge source of advice and help to them that does not have any associated conflict. This focus and approach means we are well placed to succeed in both good and bad times.''

-ends-

For more information, please contact:

Dr Adam Adams PA Consulting Group 123 Buckingham Palace Road London SW1W 9SR United Kingdom Tel: +44 20 7312 4602 Fax: +44 20 7312 4639 E-mail: adam.adams@paconsulting.com

Heather Smith PA Consulting Group 123 Buckingham Palace Road London SW1W 9SR Tel: +44 20 7312 4975 Fax: +44 20 7312 4639 E-mail: heather.smith@paconsulting.com

Notes to editors

PA Consulting Group
PA Consulting Group is a leading management, systems and technology consulting firm, with a unique combination of these capabilities. Established almost 60 years ago, and operating worldwide from over 40 offices in more than 20 countries, PA draws on the knowledge and experience of some 4,000 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.

PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA works with clients to improve performance, mobilize human resources and deliver change effectively, including managing major projects, and designing and implementing enterprise-wide systems and full e-business solutions.

PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.

PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration and flexibility in working with clients.

We are proud that our clients say "PA makes it happen".

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