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View All NewsUK – FDM Group revenue up 5%, notes strong demand
Revenue rose 4.9% at FDM Group (Holdings) plc (FDM:LSE) in 2018. UK and Ireland revenue edged down, but revenue rose in other geographies with Asia Pacific revenue up 31.1%. The London-based company noted a strong level of demand in 2018 which it sees continuing into 2019. It also reported good growth in government work.
| (£ thousands) | FY 2018 | FY 2017 | % change | FY 2018 (US$ thousands) |
| Revenue | £244,910 | £233,575 | 4.9% | $310,796 |
| Gross profit | £119,035 | £104,252 | 14.2% | $151,058 |
| Gross margin | 48.6% | 44.6% | ||
| Profit for the year | £37,058 | £32,012 | 15.8% | $47,027 |
FDM Group’s business model includes hiring new graduates, military veterans and those returning to work. It trains them as technology consultants and places them at client companies, which can hire the workers as their own employees after two years.
The company also announced that David Lister was appointed to the role of non-executive chairman effective Tuesday. Lister took on the position after Ivan Martin retired from the board. Lister has been an independent non-executive director since March 2016.
Revenue by geography
| (£ thousands) | FY 2018 | FY 2017 | % change | FY 2018 (US$ thousands) |
| UK and Ireland | £130,978 | £131,479 | -0.4% | $166,214 |
| North America | £82,119 | £75,069 | 9.4% | $104,211 |
| EMEA | £13,519 | £13,077 | 3.4% | $17,156 |
| Asia Pacific | £18,294 | £13,950 | 31.1% | $23,215 |
FDM Group reported no material negative impact on trading from Brexit has been noted to date. It also reported the new IR35 off-payroll rules being promulgated by the government may be a benefit to the firm. “The UK government announced in its October 2018 Budget that there would be further consultation in 2019 on the treatment of off-payroll workers; we see this as a potential opportunity for our clients to further benefit from our [consultant] model.”
Quote
“The board is confident that the continuing strong levels of demand for FDM’s services across all of our territories and the momentum with which we have commenced the new year will enable the group to deliver further good operational and financial progress in 2019,” CEO Rod Flavell said.
Share price and market cap
Shares in FDM Group were up 2.23% at close in London to £870.00 on Wednesday; the company had a market cap of £921.4 million, according to FT.com.