FDM trading in line as softer market persists

14th May 2024 09:33

(Sharecast News) - It professional services provider FDM Group said in an update on Tuesday that the group had performed in line with the board's expectations in the first four months of the year.

The London-listed firm, which was holding its annual general meeting, said the softer trading conditions noted during its preliminary results on 20 March, however, were persisting.

As of 30 April, the group had 3,543 consultants assigned with clients, marking a 26% decrease from the previous year.

That reduction reflected the ongoing assessment of consultant recruitment and Skills Lab deployment to match client demand effectively.

In response to market dynamics, FDM said it had implemented prudent measures to manage fixed costs.

Internal staff headcount decreased by 20% compared to the same period in 2023, aligning with consultant assignments.

The group said it was maintaining its commitment to adjusting resource levels to meet client demands promptly as market conditions evolved.

Despite economic and geopolitical uncertainties affecting client decisions, the group's balance sheet remained robust.

Cash balances stood at £46m as of 30 April, with no debt.

"Whilst many of our clients' decisions on commencing major projects continue to be subject to delay or deferral as a result of the macroeconomic and geo-political uncertainties that remain in most of our regions, we are nevertheless seeing the very early signs of improvement in certain areas," said chair David Lister.

At 0913 BST, shares in FDM Group Holdings were up 1.55% at 389.97p.

Reporting by Josh White for Sharecast.com.