FDM Group (Holdings) (FDM) H2 2024 earnings summary

Executive summary

• Revenue declined to £257.7m for 2024, down 23% year-over-year, with adjusted profit before tax at £34.0m, a 32% decrease from 2023.

• Strong balance sheet maintained with no debt; closing cash at £40.6m.

• 52 new clients secured globally, 35 outside financial services; 4,033 consultants deployed at year-end, down 34% from 2023.

• Exceptional costs of £4.9m incurred to align staff and consultant levels with market demand.

• Early 2025 trading shows modest uptick in demand, but investment in recruitment remains cautious due to macroeconomic uncertainty.

Financial highlights

• Adjusted PBT margin fell to 13.2% from 15.0% in 2023; effective tax rate at 26.7%.

• Basic EPS dropped 50% to 14.6p; adjusted basic EPS down 30% to 23.0p.

• Dividend per share reduced to 22.5p (10.0p interim, 12.5p final), down from 36.0p in 2023.

• Cash conversion at 95%, down from 116% in 2023.

• Net profit for the year was £20.5m, down from £40.8m in 2023.

Outlook and guidance

• Modest improvement in client demand seen in early 2025, but macroeconomic uncertainty limits significant investment in recruitment and training.