FDM flags weaker market backdrop

FDM Group reported a jump in half-term revenues on Wednesday, but warned that market conditions had deteriorated.

The recruitment firm, which specialises in recruiting, training and deploying IT consultants, said revenues rose 18% in the six months to 30 June, to £179.9m, while adjusted operating profits were 2% higher at £25.5m.

Pre-tax profits increased 34% to £29.8m, boosted by a share-based payment credit during the period.

FDM said it had made a good start to the year, but that market conditions had "weakened" through the second quarter.

In particular, it said global macroeconomic and geopolitical uncertainty was continuing to disrupt the buying patterns of some clients, along with weakness in the banking and finance sector.

Rod Flavell, chief executive, said: "We delivered a resilient performance against a backdrop of uncertain market conditions, with some clients delaying and deferring decisions about budget commitment and consultant placement.

"Our scalable and flexible business model has allowed us to take the appropriate measures to adjust recruitment, training and our unallocated resource to align more closely with the varying demand with our consultants.

"There remain structural and systemic skills shortages in all the geographies in which we operate.

"We remain optimistic there will be an improvement in client confidence as the second half progresses, and the board anticipates that the group’s financial performance for the year as a whole will be broadly in line with expectations."

As at 0915 BST, shares in FDM were off 4% at 591.7p.