Organisations in search of high-quality IT consultants have turned en masse to FDM (FDM), which recruits and trains graduates in disciplines such as data analytics and cyber security and then lends them out to clients. Robust demand for these so-called 'Mounties' drove adjusted operating profits up 21 per cent to £30.2m in 2015.
The number of Mounties assigned to client sites soared 31 per cent to exceed 2,000 by the year-end. That drove Mountie revenues up more than a third to £119m. Management also signed 65 new clients in industries as diverse as energy, media and aviation. Sales and adjusted operating profits rose across FDM's territories. The standout performer was North America: 179 more Mounties and a landmark client win meant revenues soared 64 per cent there. But operating costs leapt more than a third as management opened a training academy in Leeds and invested in new facilities in Glasgow, Hong Kong and Toronto.
Broker Investec predicts increased capacity will allow FDM to boost its Mountie count by 24 per cent to about 2,500 in 2016. It raised its forecasts and now expects adjusted pre-tax profit of £34m in 2016, giving EPS of 24p (from £30.1m and 21p in 2015).
| FDM (FDM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 500p | MARKET VALUE: | £538m | |
| TOUCH: | 500-510p | 12-MONTH HIGH: | 600p | LOW: 315p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 45p* | NET CASH: | £22.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 97 | 11.8 | na | na |
| 2012 | 103 | 15.9 | na | na |
| 2013 | 106 | 19.9 | 14.1 | na |
| 2014† | 123 | 19.0 | 12.7 | 7.5 |
| 2015 | 161 | 29.4 | 20.5 | 16.5** |
| % change | +30 | +55 | +61 | +120 |
Ex-div: 12 May Payment: 3 Jun *Includes intangible assets of £19.6m, or 18p a share **Excludes special dividend of 5p †FDM relisted in June 2014 | ||||
