FDM Group (Holdings) (FDM) H2 2025 earnings summary

Executive summary

• Revenue fell 31% year-over-year to £177.7m, with profit before tax down 73% to £7.6m amid persistent challenging market conditions and geopolitical uncertainty.

• Consultant headcount declined 22% to 2,003, with reductions across all regions; utilisation rate remained stable at 92.7%.

• The business maintained a strong balance sheet with £35.3m cash and no debt, and continued to invest in AI skills and sales transformation.

Financial highlights

• Adjusted operating profit dropped 59% to £13.6m; adjusted profit before tax down 60% to £13.7m.

• Basic EPS decreased 72% to 5.2p; adjusted basic EPS down 57% to 10.0p.

• Cash flow from operations was £21.9m, with cash conversion at 292% and adjusted cash conversion at 200%.

• Dividend per share was 10.0p, down from 22.5p in 2024.

• Exceptional administrative expenses were £2.6m, and a £3.3m goodwill and asset impairment charge was recognized in EMEA.

Outlook and guidance

• Early 2026 shows modest uptick in client activity, but economic and geopolitical uncertainty persists, especially due to Middle East events.

• Board remains optimistic for growth in less impacted regions and is focused on cost management and prudent investment.

• Increasing client demand for AI-enabled skills positions the business well for future opportunities.