UK headquartered staffing and consulting firm, FDM Group (FDM: LSE) ended 2024 with fewer consultants placed at clients than expected. And while financial performance for the year will still likely be in line with expectations, difficult conditions appear poised to continue in 2025. The firm provides IT staffing on a recruit-train-deploy basis at locations around the world, including in the US and Canada.

The company expects to report revenue fell 23% in 2024 to £258 million (USD 324.2 million). The decrease was 21% on a constant currency basis.

FDM ended the year with 2,578 consultants placed with clients, down from 3,892 in 2023. The number of training completions also fell to 877 from 1,338 in 2023.

“We anticipate that market conditions will remain uncertain during 2025, and it is difficult to predict when they might demonstrate signs of a sustained improvement,” CEO Rod Flavell said in a press release. “While we continue to see encouraging levels of engagement with clients, it is unclear how soon clients’ hiring budgets will be released to enable a recovery in our major end markets.”

The board now believes full-year 2025 revenue could be below expectations, Flavell said.

For now, the company is taking steps to adjust recruitment, training and staffing levels to align with market conditions, he said. FDM had already reduced internal headcount by 30% in 2024.

“FDM is a robust and agile business, with a strong balance sheet and experienced management team and board, operating in fundamentally strong markets,” Flavell said. “The board remains confident that our business is well positioned to return to growth as and when market conditions improve.”

The company will release full-year 2024 results on 19 March.

Share price

Shares in FDM Group set a new 52-week low on 29 January in London when they reached £230.00 (USD 286.10). Shares closed at 228.50, down 13.77% on the day.