Management Consulting Group PLC (LON:MMC) said the coronavirus pandemic has led to “material uncertainty” over its ability to generate revenues in the normal course of business due to travel restrictions and remote working.
In a trading update on Thursday, the consultancy firm said it had begun to suffer the effects of the pandemic on its business in February, with a number of projects in Asia deferred or temporarily put on hold.
The company also said travel restrictions had “severely restricted” the work of its consulting workforce, who are often required to visit client sites internationally.
As a result of the decline, the firm said it is “managing its liquidity and its cost base very tightly” and has introduced temporary salary reductions and deferrals to non-essential expenditure alongside the furloughing of some staff.
However, despite the slowdown in business, the firm said it had “adequate resources” to operate for the foreseeable future, even in a worst-case scenario.
It added that it expects to be “well placed to take advantage of the expected upturn in activity with a significantly more efficient cost base once the economic and operational backdrop improves”.
The shares were steady at 0.77p in mid-morning trading.