FDM Group (Holdings) plc, a London-based firm supplying IT and business consultants via the recruit-train-deploy model, yesterday reported revenue rose 16% on a constant currency basis in the first six months of 2023. The increase came despite softer business conditions, particularly in the second quarter.

“We delivered a resilient performance in the first half against a backdrop of uncertain market conditions, with some clients delaying and deferring decisions around budget commitment and consultant placements,” CEO Rod Flavell said.

The company was able to adjust recruitment, training and unallocated resources to align more closely with client demand, Flavell continued.

FDM Group reported the number of consultants placed with clients at the end of the first half was down 2% to 4,602 when compared to the first half of last year.

Flavell said the company believes there will be an improvement in client confidence in the second half, and systemic skills shortages remain in the geographies in which the company operates.

Revenue rose across geographies.

UK. Revenue in the UK edged upward 1.3% to £69.7 million (US$88.0 million). The number of consultants in the UK fell by 15% to 1,743.

EMEA. Revenue from the Europe, Middle East and Africa region increased by 31.7% year over year to £12.2 million (US$15.5 million). The number of consultants deployed at the end of the first half rose by 22% year over year to 359.

Asia Pacific. Revenue in the Asia Pacific region rose by 11.7% to £27.4 million (US$34.5 million), but the number of consultants fell 2% year over year to 937.

North America. North American revenue was up 40.5% to £70.6 million (US$89.1 million). The company noted North American revenue benefited from strong headcount growth in 2022. The number of consultants deployed in North America was up by 11% year over year at the end of the first half to 1,563.

Adjusted operating profit rose by 2% while adjusted profit before tax increased by 4%.

Flavell added, “There remain structural and systemic skills-shortages in all the geographies in which we operate. While mindful of near-term pressures, levels of client engagement remain encouraging and we will ensure we are well placed to assist our clients in overcoming these shortages when market conditions improve.

“We are focussed on delivering against our objectives, both short and medium term,” Flavell said. “We remain optimistic that there will be an improvement in client confidence as the second half progresses, and the board anticipates that the group's financial performance for the year as a whole will be broadly in line with its expectations."

FDM Group set a new 52-week low during yesterday's trading session when it reached £539.48. Over this period, the share price is down -37.15%. Shares closed yesterday at £560.00, down 8.94% on the day. The company has a market cap of £673.70 million.