FDM (FDM) said that 2020 has started “promisingly”. The group - which deploys IT consultants known as ‘Mounties’ to client sites – conceded that the coronavirus does present challenges tied to remote working and in-person attendance. But, reassuringly, the financial impact so far has been insignificant.
And in any case, FDM is facing up to these issues from a robust platform. In 2019, it saw a 12 per cent uptick in Mountie revenues to £268m, with ancillary contractor revenues decreasing as planned.
In the UK, FDM has felt the effects of political uncertainty – leading to lower demand from government ministerial departments. For the UK and Ireland overall, Mountie revenues edged up just 7 per cent, while the number of consultants placed on client sites slipped by 5 per cent to 1,910. But, elsewhere, North American consultancy revenues climbed by a more encouraging 18 per cent, with a 7 per cent improvement in Mounties placed on site to 1,277.
Broker Numis reckons that FDM can offset most of the effects of Covid-19 if disruption in its key geographies does not extend far beyond Easter. Still, it has reduced its adjusted EPS estimates for 2020 by 8 per cent to 35.3p, marking a decline from 38.6p in 2019.
| FDM (FDM) | ||||
| ORD PRICE: | 783p | MARKET VALUE: | £ 855m | |
| TOUCH: | 782-783p | 12-MONTH HIGH: | 1,102p | LOW: 645p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 69p* | NET CASH: | £13.8m** | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 161 | 29.4 | 20.5 | 16.5 |
| 2016 | 189 | 35.3 | 24.4 | 19.6 |
| 2017 | 234 | 43.7 | 29.8 | 26.0 |
| 2018 | 245 | 48.2 | 34.2 | 30.0 |
| 2019 | 272 | 52.5 | 37.3 | 34.5 |
| % change | +11 | +9 | +9 | +15 |
| Ex-div: | 21 May | |||
| Payment: | 12 Jun | |||
| *Includes intangible assets of £19.7m, or 18p a share; **Includes lease liabilities of £23.2m | ||||
