FDM Group (Holdings) (FDM) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was £97.3m, down 31% year-over-year; adjusted profit before tax fell 49% to £9.0m.

• Consultant headcount at week 26 was 2,173, down 37% from prior year and 16% from year-end 2024, as recruitment and coaching completions were reduced to align with lower demand.

• Activity levels improved early in the period but reverted to prior levels as economic and geopolitical uncertainty returned.

• 21 new clients were secured globally, with 14 outside financial services; interim dividend set at 6.0p.

• Exceptional costs of £1.0m were incurred to align staffing with demand.

Financial highlights

• Gross profit for H1 2025 was £44.3m, down from £62.0m in H1 2024.

• Adjusted operating profit fell 48% to £9.1m; adjusted profit before tax dropped 49% to £9.0m.

• Basic EPS decreased 45% to 5.7p; adjusted basic EPS down 46% to 6.3p.

• Closing cash position was £34.6m, down from £36.9m in H1 2024; cash conversion improved to 155% from 103% year-over-year.

• Interim dividend per share was 6.0p, down 40% from H1 2024.

Outlook and guidance

• Ongoing uncertainty in end markets is causing elongated procurement and delayed commercial decisions.

• Board anticipates full-year results will be significantly below previous expectations.

• The business is equipping consultants with AI skills, expecting future opportunities in this area.

• Capacity and cost base have been adjusted to current demand, retaining flexibility for market improvement.