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FDM Group Solid operational and financial progress

FDM Group (Holdings) plc (LON:FDM) and its subsidiaries, have today announced its results for the year ended 31 December 2019.

Highlights

 31 December 201931 December 2018Restatedfor IFRS 16 1% change
Revenue£271.5m£244.9m+11%
Mountie revenue2£268.2m£239.0m+12%
Adjusted operating profit3£55.2m£51.8m+7%
Profit before tax£52.5m£48.2m+9%
Adjusted profit before tax3£54.5m£51.2m+6%
Basic earnings per share37.3p34.2p+9%
Adjusted basic earnings per share338.8p36.3p+7%
Cash flow generated from operations£57.7m£49.3m+17%
Cash conversion4108.4%100.9%+7%
Ordinary dividend per share34.5p30.0p+15%
Net cash position at period end£37.0m£33.9 m+9%
  • Solid operational and financial progress
  • Mounties assigned to client sites at week 525 were up 5% at 3,924 (2018: 3,747)
  • Mountie utilisation6 rate is down marginally at 96.1% (2018: 97.3%)
  • 2,115 training completions in 2019, a 2% decrease (2018: 2155), with the timing of training courses flexed to align with client demand
  • 97 new clients secured globally during the year (2018: 77); continued sector diversification, with 67% of new clients outside the financial services sector
  • Continued investment in people, training, technology and new disciplines to support future growth, including major new Academy in Sydney
  • Global total training capacity7 of 988 at year end, up by 5% over December 2018
  • Further geographic expansion, including strong growth in Mounties on site in EMEA (+48%) and APAC (+29%); Mounties placed for the first time in the Netherlands and good progress in Australia
  • Non-core revenue generated from contractors continues its managed decline, down 44%
  • Final dividend of 18.5 pence per share giving a total ordinary dividend for the year of 34.5 pence, an increase of 15% on 2018
  • Group well positioned for continued success in 2020 and beyond

1 The Company has restated comparative figures following the fully retrospective adoption of IFRS 16 ‘Leases’ at 1 January 2019. See Note 4 for more information.

2 Mountie revenue excludes revenue from contractors.

3 The adjusted operating profit and adjusted profit before tax are calculated before Performance Share Plan expenses (including social security costs) of £2.0 million (2018: £3.0 million). The adjusted basic earnings per share is calculated before the impact of Performance Share Plan expenses (including social security costs and associated deferred tax).

4 Cash conversion is calculated by dividing cash flow from operations by operating profit. Previously cash conversion was calculated by dividing cash flows from operations by profit before tax. Following the adoption of IFRS 16 ‘Leases’, the calculation was amended and the 2018 comparative restated, to provide a more meaningful indicator.

5 Week 52 in 2019 commenced on 16 December 2019 (2018: week 52 commenced on 17 December 2018).

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

7 Total training capacity seats is combined permanent capacity (2019: 844; 2018: 848) and temporary capacity (2019:144; 2018: 90).

Rod Flavell, FDM Group Chief Executive Officer, said:

“The strength and flexibility of our business model enabled FDM to deliver a solid performance in 2019 against a backdrop of challenging conditions in certain of our markets.

2020 has started promisingly and in line with management expectations, with strong levels of client activity and demand. We anticipate a further year of good operational and financial progress. The Coronavirus is presenting us with a range of challenges relating to remote working, attendance on client sites and mobility for our trainers; the financial impact to date of these has not been significant, but we continue to monitor the situation closely.”

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