FDM Group’s Share Price Dropped 3.48% on the Full-Year Update

The FDM Group (Holdings) PLC (LON: FDM) share price dropped 3.48% after issuing its year-end trading update. The company is a leading global provider specialising in Information Technology services. It announced an interim trading summary for the year ended 31 December 2023 ahead of the final annual results published on 20 March 2024.

In 2023, FDM Group exhibited steady performance despite encountering challenging market conditions from the start of the second quarter, which persisted throughout the year. These conditions, characterised by economic and geopolitical uncertainties, impacted client demand.

In response, the Board made strategic adjustments in recruitment, training, Consultant allocation, and internal staffing to align with these market dynamics. The Group expects its financial results for the year ending 31 December 2023 to meet its projections.

The Group anticipates reporting revenue of £334 million for 2023, a 1% increase from the previous year (2022: £330 million). On a constant currency basis, this represents a 2% rise, equivalent to £7.4 million.

By the end of 2023, the Group had 3,892 Consultants working with clients, a 21% decrease from the previous year (2022: 4,905). In regional terms, the UK had 1,411 Consultants (2022: 1,958), North America had 1,322 (2022: 1,618), APAC had 832 (2022:1,011), and EMEA had 327 (2022: 318). 

The average number of Consultants assigned to clients in 2023 was similar to 2022, resulting in a comparable revenue performance. During the year, the Group completed 1,338 training sessions (2022: 3,179 completions), reflecting the adjusted approach to the reduced client demand.

The internal staff headcount was reduced by approximately 10% in 2023 due to lower business activity levels.

Rod Flavell, FDM Group CEO, commented: “The last nine months of 2023 saw difficult trading conditions across our markets, with many clients delaying and deferring decisions around projects and consultant placements given the macroeconomic and geo-political uncertainties they faced. Our agile business model allowed us to take the action required to align our business activity and resources appropriately, a programme which continues into the current year.”

FDM Group share price. 

The FDM Group share price dropped 3.48% to trade at 435.3p from Tuesday’s closing price 451.0p.