FDM shares plunge on bleaker outlook for 2024
Sharecast
Published Nov 13, 2023 09:16
Updated Nov 13, 2023 09:41
FDM shares plunge on bleaker outlook for 2024
Sharecast - The FTSE 250 company described an ongoing impact from macroeconomic and geopolitical uncertainties, leading clients to delay project decisions and consultant placements.
It did, however, report sustained client engagement and early signs of returning confidence, albeit with regional variations.
FDM said it benefited from the persistent shortage of technology skills across its operational geographies.
To capitalise on that, it said it prioritised maintaining high-quality resources with the right skill sets, positioning itself to meet client demands as market conditions and demand recover.
As of the end of October, FDM had 4,136 consultants assigned to clients, down from 5,014 in October last year and 4,602 at the end of June.
The company said it maintained a solid financial position with £35.3m in cash as of 31 October, compared to £34.4m at the same time in 2022 and £38.1m at the end of June, with no debt.
Additionally, FDM recently paid an interim dividend of 17p per share, totalling £18.5m, on 13 October.
FDM said its model had allowed it to make necessary adjustments in recruitment, training, and staffing levels to align with current market conditions.
While it anticipated that its overall financial performance for 2023 would broadly meet expectations, the outlook for 2024 was expected to be impacted by a lower-than-previously-expected number of consultants assigned to clients at the beginning of the year.
At 0916 GMT, shares in FDM Group (LON:FDM) Holdings were down 16.49% at 390p.
Reporting by Josh White for Sharecast.com.
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