IT staff provider FDM Group has produced a solid set of interims in tough trading conditions.
Revenues fell from £25.4m to £25.1m in the six months to June 2009, but the rise in gross profits from £6.5m to £6.92m is more significant. A reduction in revenues from low margin freelance staff has been partly replaced by higher margin ‘Mounties’ who are employed directly by FDM. There are 302 Mounties currently deployed by FDM and it is interviewing more than 100 new applicants each week. Utilisation rates for Mounties are 96.6% and day rates are holding up well.
Additional costs for the new head office and training centre in London led to a fall in pre-tax profit from £2.39m to £2.2m.
Finance and insurance has always been the main customer base and it has increased in importance from 48% to 62% of revenues in the latest period. Most of that growth is from investment banking businesses.
The international operations are growing and offsetting a reduced contribution from the UK. The company’s operations have been reorganised over five functional areas which should make it more straightforward to manage the business.
The interim dividend has been maintained at 1p a share. There is still £9.46m in the bank even though large tax and dividend bills were paid in the first half. The year end cash figure is likely to be higher.
The shares dipped 3p to 107.5p a share, which values FDM at £25m.
Bid discussions with management are continuing but finance director David Templeman says that this is not having a negative effect on the management of the business.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.