Welcome to this week's penultimate news round-up at Consult THIS. To make up for yesterday's utter lack of a round-up, this edition will be particularly robust. Bang that gong, I know you're thrilled.
First up we hear from FTI Consulting, which today published its financial results for fourth quarter and full fiscal year 2010. In the fourth quarter, the firm brought in $356 million compared with $343 million last year. Though profit fell from Q4 2009 as a result of the firm's decision to unify all of its subsidiaries under the FTI Consulting banner (apparently it's expensive to re-name your own companies), the figure still beat Wall Street analysts who expected a significant decline. Revenue in the Corporate Finance/Restructuring departments fell 9.4 percent from Q4 2009, a disappointment the firm attributes to a continued decline in "demand for restructuring services" worldwide. The company's other consulting segments, Forensic/Litigation Consulting and Economic Consulting, fared better with growth of 14 percent and 2 percent respectively. Full the full year, FTI cites revenues of roughly $1.4 billion, virtually unchanged from 2009. The firm blames "current market conditions" for what it predicts will be another modest year in 2011; FTI's most optimistic prediction for this year sees a revenue increase of just $1 million. Despite the relative modesty of these financial results, President and CEO Jack Dunn remained bullish about FTI's prospects in the near future. "We enter 2011 with practices that are leaders in their respective markets and a strong financial position, with nearly $385 million in cash and equivalents for acquisitions, share repurchases and investments in our franchise and brand." Some of that $385 million could end up saving LECG from insolvency if a plan to acquire several LECG consulting units goes through.
Logica also released fiscal year 2010 financial results this week. The firm was happy to report a return to growth in the second half of FY 2010, a moral victory for a firm that struggled mightily in the recession. Overall for the year revenue was up just 1 percent from 2009, and Logica barely broke even after eating £30 million in restructuring charges this year. The firm's consulting unit has been on a revenue slide since 2008 due to major decreases in demand for IT advisory; though the unit failed to turn the tide in 2010, it did slow the decline to 5 percent, a major improvement from the recent past. Despite 2010's many setbacks, the firm holds much hope for 2011. "This is year when we believe we can start to move the margins up," said CEO Andy Green, predicting 2 to 5 percent revenue growth in 2011.
KPMG announced today that it had acquired Canadian consultancy Groupe 4L² for an undisclosed sum. Groupe 4L² is a major force in supply chain and logistics consulting that will undoubtedly lift its new parent's reputation in Canada. The acquisition sees Groupe 4L² move to KPMG's Canada headquarters in Montreal, accompanied by president Stephen Lauzon, who becomes a KPMG principal.
Last up for today, the ever-present Booz Allen Hamilton named a new COO this morning. Horacio Rozanski, at Booz Allen since 1992, assumed the role and the added bonus title of executive vice president effective immediately. According to a press release, Rozanski has essentially been doing the COO job for several years without the proper recognition. As a result, none of his duties will change. And he doesn't even make the board of directors like the CEO and CFO do. Kind of a lame promotion, really. Rozanski, a business strategy pro, represents one of the few faces among Booz Allen's top leadership that hasn’t headed a covert military intelligence agency (or the like) in the last 30 years. Bravo, Horacio!
For more information:
FTI Consulting Reports Fourth Quarter and Full Year Results
Logica reports a strong finish to 2010
Groupe 4L2 joins forces with KPMG
Booz Allen Hamilton Names Horacio Rozanski as Chief Operating Officer
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