FDM Group (Holdings) (FDM) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was £140.2m, down 22% year-over-year, with adjusted operating profit of £17.4m, down 32% from H1 2023.

• Exceptional costs of £2.1m were incurred to align staff and consultant headcount with market demand, resulting in annualised internal staff cost savings over £4m.

• Consultant recruitment, coaching completions, and Skills Lab numbers were reduced to match lower client demand; consultant tenure increased.

• 29 new clients were secured globally, with 18 outside financial services.

• Interim dividend declared at 10.0p per share, down from 17.0p in H1 2023.

Financial highlights

• Adjusted profit before tax was £15.5m, down 48% year-over-year; adjusted PBT margin fell 1.9ppts to 14.5%.

• Basic EPS was 10.3p, down 48% from H1 2023; adjusted basic EPS was 11.7p, down 30%.

• Gross profit was £62.0m (2023: £83.6m); profit for the period was £11.2m (2023: £21.6m).

• Closing cash was £36.9m, slightly down from £38.1m in H1 2023; cash conversion improved to 104%.

• Administrative expenses reduced to £46.8m, reflecting cost management efforts.

Outlook and guidance

• Board expects full-year financial performance to be in line with current expectations.

• Focus remains on cost management and maintaining resource flexibility to respond to market recovery.

• Softer trading conditions persist, but a more stable backdrop is anticipated in the second half as client engagement remains encouraging.

• Recruitment to Skills Labs expected to increase as market conditions improve.