FDM Group, a global professional services provider focused on Information Technology, has provided a trading update. The company states that since the publication of its Interim Results announcement in July 2023, macro-economic and geo-political uncertainty has caused clients to delay and defer decisions regarding project commencements and consultant placements. However, there are signs that confidence is slowly returning, albeit varying by geography.
FDM highlights that there continues to be a systemic shortage of technology skills in all the geographies in which it operates, which provides a supportive backdrop for the company. FDM is focused on ensuring that it has the appropriate levels of high-quality resources with the optimal blend of skills to meet clients' needs as market conditions and demand improve.
As of the end of October 2023, FDM had 4,136 consultants assigned to clients, compared to 5,014 at the end of October 2022 and 4,602 at the end of June 2023.
The company reports a robust balance sheet, with £35.3 million in cash as of 31 October 2023, compared to £34.4 million at the same time last year and £38.1 million at the end of June 2023. FDM has no debt.
FDM's scalable and flexible business model has allowed the Board to adjust recruitment, training, and staffing levels to align with current market conditions. As a result, the Board expects the company's overall financial performance for the full year 2023 to be broadly in line with its expectations. However, the performance for 2024 will be impacted by a lower than previously anticipated number of consultants assigned to clients at the beginning of the year.