FDM’s (FDM) half-year revenues were flat on the 2017 comparative, reflecting a planned reduction in lower-margin contractor revenue, set against revenues from Mounties – specially trained consultants – which rose 13.7 per cent to £115m. The IT group’s changing sales mix helped the gross margin climb from 43.3 per cent to 49 per cent year on year.
UK and Ireland sales were hit by the contractor declines, but it was the star region by adjusted operating profits – up 24 per cent to £18.2m. Elsewhere, Asia-Pacific Mountie revenues climbed 32 per cent to £8.5m and adjusted operating losses here narrowed from £0.3m to £0.1m. North America’s adjusted operating profits fell 14.5 per cent to £6.5m, due to increased investment in “future growth”.
Management attributed a 20.4 percentage point fall in cash conversion to December’s “exceptionally strong working capital position”. Encouragingly, it anticipates full-year numbers in line with expectations.
Broker Panmure Gordon forecasts adjusted pre-tax profits of £50m and EPS of 34p in 2018 (up from £47.2m and 31.8p in 2017).
| FDM (FDM) | ||||
| ORD PRICE: | 995p | MARKET VALUE: | £1.08bn | |
| TOUCH: | 992-1,002p | 12-MONTH HIGH: | 1,138p | LOW: 760p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 61p* | NET CASH: | £29.8m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 117 | 20.6 | 14.0 | 12.0 |
| 2018 | 118 | 23.0 | 16.4 | 14.5 |
| % change | +1 | +11 | +17 | +21 |
| Ex-div: | 23 Aug | |||
| Payment: | 21 Sep | |||
| *Includes intangible assets of £19.3m, or 18p a share | ||||
