Good tech help has been easier to find since FDM (FDM) set up shop. Strong demand for 'Mounties' - the IT consultants whom the group trains then deploys to clients such as US mortgage company Fannie Mae - drove adjusted operating profits up 26 per cent to £13.5m.
The number of Mounties assigned to clients increased by 39 per cent year on year to about 1,830 as companies clamoured for experts in business analytics and other disciplines. That fuelled a 35 per cent rise in Mountie revenues to over £55m. Sales climbed 18 per cent in the key UK and Ireland market and leapt by more than half in FDM's other territories.
Management replaced the group's Manchester-based facility with a much larger academy and sales office in Leeds, and plans to make similar moves in Glasgow and Toronto. FDM also made inroads into North America as it placed Mounties in more US states, such as Maryland, and signed up Canada's five largest banks. And brisk trading in Asia Pacific prompted management to start scouting out sites for a new academy in Singapore. However, new German legislation regarding contractors could temper demand there as clients adjust their policies.
Admission to FDM's training academies increased by 28 per cent, providing a strong pipeline of future Mounties. Broker Investec hiked its forecasts and now expects pre-tax profit of £29.5m in 2015, giving EPS of 20.9p (from £24.4m and 17.5p in 2014).
| FDM (FDM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 437p | MARKET VALUE: | £470m | |
| TOUCH: | 436.8-437p | 12-MONTH HIGH: | 437p | LOW: 315p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 41p* | NET CASH: | £13.6m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014† | 56.6 | 5.1 | 2.4 | nil |
| 2015 | 74.6 | 13.1 | 9.2 | 8.0 |
| % change | +32 | +158 | +283 | - |
Ex-div: 20 Aug Payment: 25 Sep *Includes intangible assets of £19.5m, or 18p a share †FDM relisted in June 2014 | ||||
