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FDM Group (Holdings) plc

FDM Group Holdings plc In line with expectations

FDM Group Holdings plc (LON: FDM) and its subsidiaries, today announced its Interim Results for the six months ended 30 June 2019.

 30 June 201930 June 2018Restatedfor IFRS 16 1% change
Revenue£134.4m£117.8m+14%
Mountie revenue£132.6m£114.6m+16%
Adjusted operating profit2£27.0m£25.2m1+7%
Profit before tax£24.9m£22.9m1+9%
Adjusted profit before tax2£26.6m£24.9m1+7%
Basic earnings per share17.6p16.3p1+8%
Adjusted basic earnings per share218.9p17.8p1+6%
Interim dividend per share16.0p14.5p+10%
Cash flows generated from operations£21.3m£19.5m1+9%
Cash conversion385.7%85.4%1+0%
Net cash position at period end£28.7m£29.8m-4%

· Strong financial performance, in line with the Board’s expectations whilst maintaining our investment for growth

· Mounties assigned to client sites at week 264 were up 13% at 3,846 (2018: 3,416)

· Mountie utilisation rate5 for the six months to 30 June 2019 was 96.1% (2018: 97.2%)

· Growth in Mountie headcount and revenue across all 4 operating regions; Mounties placed for the first time in the Netherlands and good progress in Australia following recent investment

· Non-core revenue generated from contractors continues its managed decline, down 44%

· Good level of new business wins, with 40 new clients secured globally (2018: 38)

· Further sector diversification, with 68% of new clients from non-financial services (2018: 66%), including a growing presence in energy and resources

· 1,008 training completions in 2019, a 4% increase (2018: 965)

· Interim dividend of 16.0 pence per share, an increase of 10% on 2018 (14.5 pence)

1The Company has restated comparative figures following the adoption of IFRS 16 ‘Leases’ at 1 January 2019. See Note 5 for more information.

2 The adjusted operating profit and adjusted profit before tax are calculated before performance share plan expenses (including social security costs). The adjusted basic earnings per share is calculated before the impact of performance share plan expenses (including social security costs and associated deferred tax).

3 Cash conversion is calculated by dividing cash flows generated from operations by profit before tax.

4 Week 26 in 2019 commenced on 24 June 2019 (2018: week 26 commenced on 25 June 2018).

5 Utilisation rate is calculated as the ratio of cost of utilised Mounties to the total Mountie payroll cost.

Rod Flavell, FDM Group Holdings plc Chief Executive Officer, said:

“The first half has seen a strong financial performance and a good level of new client wins across a range of industries. During the second quarter we experienced lower activity in the UK government sector, in response to political uncertainties, and from a small number of financial services clients, primarily in North America. Current activity levels across both of these geographies are encouraging.

We continue to be successful in diversifying our activities and client base across an increasing range of geographies, technologies and industry sectors. We have a strong financial position and are well placed to evolve our investment plans for each of the geographic markets in which we operate in line with local market conditions.

We remain confident in both the outturn for the full year and continued progress thereafter.”