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70% of UK firms expect new business growth     results show sustained growth in management consultancy revenues over the last year. The sector has now enjoyed uninterrupted growth since Q4 2002, with like-for-like revenues increasing 6.6% in the last 12 months.    Encouragingly, the outlook for 2006 looks rosy. Around 70% of MCA member firms are predicting an increase in new business over the next quarter. And reflecting the ever-     higher utilisation rates being achieved in the industry, 80% of member firms expect an increase in their headcount of consultants employed over the next three months.    Nick Owen, MCA vice-president 2005/6 and managing partner at Deloitte, said: “Although there has been limited growth over the last quarter across all sub-sectors, the sustained growth within the consulting sector     over the past two and a half years has provided further evidence of the value consultants add, and the positive effect they are making on their clients’ business, both in terms of improved productivity and increased revenues.”    Although MCA members are predicting further growth, the MCA survey also showed that the sector’s confidence in the UK’s economic performance underwent a dramatic decline in the     third quarter: nearly two thirds of members (58 %) were ‘not confident’ or ‘not at all confident’ about the UK’s economic performance. This is the first dramatic change in confidence for over four years (since the first quarter of 2001) and sounds a cautionary note in an otherwise upbeat quarterly report.           The UK’s Management Consultancies Association (MCA) has just released its latest quarterly survey of member firms’ performance and expectations for the coming quarter. The

Detica maintains momentum     Detica saw an excellent first half with increases in revenues in both its government and commercial businesses and the announcement of an acquisition aimed at increasing capacity in its commercial arm. Detica said the outlook for the full year is “encouraging”.    The results for the six months to 30 September 2005, presented under IFRS, show revenue increased by 35% to £43.5m (2004: £32.3m). Group profit before tax grew by 18% to £4.6m (2004: £3.9m).        The core UK business delivered an excellent performance, with revenues and operating profits increasing by 35% to £43.5m and 34% to £6.4m respectively. The operating profit margin was similar to last year at 14.8% (2004: 14.9%).    Both the government and commercial divisions posted double-digit increase in revenue –¬ 44% and 17% respectively – with commercial achieving around 8% organically.    Continuing the trend of recent years, the government business     (comprising public sector and national security) was the outstanding performer with revenues increasing by 44% to £30m.    Detica’s commercial business increased revenues by 17% to £13.5m in the half, with Extraprise, which was acquired in April, contributing revenues of £1.1m.    Detica has been awarded what it considers a strategically important contract worth £3.5m over five years to provide a managed fraud     detection service to the UK’s retail insurance industry.    Furthermore, Detica’s proposed acquisition of Evolution Consulting Group plc which is expected to be completed in January, effectively doubles Detica’s financial services practice.    Detica has agreed to buy Evolution, a consultancy and systems integrator focused on the capital markets sector, for approximately £8.5m. Evolution employs 105 staff.        In September, the US operation gained the necessary regulatory approvals to contract directly with the US Government, and Detica it is already working on its first assignment, worth “a few hundred thousand pounds”, and is building a strong pipeline of opportunities. The business is expected to contribute to profits next year.

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