FDM Group (Holdings) plc has announced its preliminary results for the year ended 31 December 2023. The company reported a 1% increase in revenue, reaching £334.0 million, and a 22% rise in profit before tax, amounting to £55.6 million. However, adjusted operating profit decreased by 5% to £49.6 million. Basic earnings per share saw a 17% increase, while adjusted basic earnings per share decreased by 12%. The cash position at the end of the period was £47.2 million, up 4% from the previous year.
The company's agile business model allowed it to adapt to challenging market conditions, resulting in a resilient performance in 2023. FDM took necessary actions to align recruitment, training, and resource levels appropriately, with a focus on maintaining a robust balance sheet and no debt. The company's cash flow generated from operations increased by 24%, reflecting strong working capital management.
FDM's global consultant utilization rate decreased to 92.8% due to a higher number of undeployed consultants. The company secured 47 new clients globally, with 68% outside the financial services sector. Despite the increase in revenue, adjusted operating profit decreased by 5% to £49.6 million.
Looking ahead, Rod Flavell, CEO of FDM, expressed that the company's activity levels in the early months of the current year are below previous expectations. As a result, the Board believes that the Group's financial performance for 2024 is likely to be materially below its earlier expectations. However, Flavell remains confident in FDM's ability to return to growth as market conditions improve, given its strong balance sheet, experienced management team, and presence in fundamentally strong markets across diversified sectors and geographies.
The company proposes a final dividend of 19.0 pence per share, resulting in a total dividend for the year of 36.0 pence per share, consistent with the previous year. FDM remains focused on powering the people behind tech and innovation, helping clients navigate the rapidly changing world of technology.
This announcement contains forward-looking statements, and it is noted that the Group believes the expectations reflected in these statements are reasonable, although it can give no assurance that they will prove to be correct. Additionally, the announcement contains inside information for the purposes of the Market Abuse Regulation.