FDM Group shares rise as sees green shoots early in 2025

(Alliance News) - FDM Group Holdings PLC on Wednesday said it is seeing some "encouraging signs" in its markets, after profit slumped in 2024.

FDM shares rose 14% to 254.00 pence each in London on Wednesday morning.

The London-based IT-focused professional services provider said pretax profit in 2024 declined 49% to GBP28.1 million from GBP55.6 million in 2023. Revenue fell 23% to GGBP257.7 million from GBP334.0 million.

FDM said it was a performance in line with board expectations.

"FDM delivered a resilient performance for 2024 against a backdrop of very challenging market conditions. Trading in the early months of 2025 has been encouraging with a modest uptick in client demand across the majority of the regions in which we operate. However, the board believes that it remains too early, given continuing uncertain macroeconomic conditions, to materially increase investment in recruitment and throughput to our Skills Lab," Chief Executive Officer Rod Flavell said.

"FDM is a robust and agile business, with a strong balance sheet and an experienced management team and board, operating in fundamentally strong end-markets. It remains difficult to predict the timing of a sustained recovery in our major end-markets, but the board remains confident that our business is well positioned to return to growth as and when conditions improve."

FDM cut its final dividend by 34% to 12.5 pence from 19.0p. The total dividend was lowered by 38% to 22.5p from 36.0p.

FDM said it has named Bruce Lee as an independent non-executive director with immediate effect.

"Bruce brings strong organisational and technical leadership expertise from his career as a CIO and COO for large national and international financial services and healthcare insurance companies. He has previously held c-level leadership positions at Fannie Mae, the New York Stock Exchange, Centene Healthcare, HSBC and BNP Paribas," FDM said.

By Eric Cunha, Alliance News news editor

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