FDM Group (FDM:LSE), a London-based firm that provides IT staffing on a recruit-train-deploy basis, reported challenging conditions in the first six months of its fiscal year to 30 June.

First-half revenue fell 21% in constant currency — down 22.1% on a reported basis — to £140.2 million (US$177.3 million).

“The group traded in line with the board’s expectations during the first half of the year,” CEO Rod Flavell said in a press release. “The softer trading conditions which we reported in our [annual general meeting] trading statement on 14 May 2024 persist, with clients continuing to defer decisions.”

The number of consultants on placement at clients was down 25% year over year in the first half to 3,469. The company said it’s working to align consultant numbers with client demand. FDM reported £2.1 million (US$2.7 million) in exceptional costs in the first half to align the number of undeployed consultants with internal staff.

FDM also noted it landed 29 new clients in the first half.

Revenue by Geography

UK. Revenue fell 23% in the first half to £54.0 million (US$68.3 million). The number of consultants deployed fell 26% to 1,284.

“Uncertainty in the market continued into the first half of 2024, and the mix of our consultant population shifted towards more experienced resources as clients managed reduced budgets which restricted them from both taking on new consultants and internalizing our consultants as permanent hires,” the company said.

North America. Revenue fell by 24% year over year in the first half to £53.9 million (US$68.2 million). The number of consultants deployed fell 26% to 1,162.

“As in the UK, uncertainty in the market continued in 2024 and resulted in reduced demand for new consultants and our consultant mix becoming more experienced as clients lacked the budget to internalize the consultants as their permanent staff.”

Europe, the Middle East and Africa excluding the UK. Revenue fell by 10% to £110 million (US$139.1 million). The number of consultants deployed fell 9% year over year to 326.

“EMEA consultant headcount was somewhat less impacted by market uncertainty than the other regions, with growth in Germany and Ireland offsetting a reduction in headcount in Poland and the Netherlands.”

Asia Pacific. Revenue fell 22% to £21.3 million (US$26.9 million). The number of consultants deployed fell 26% year over year to 697.

“Across APAC we experienced similar market conditions to the UK and North America. We adjusted our training schedules to reflect reduced demand, and during the period we coached 147 consultants.”

FDM Group - H1 2024

Share Price

Shares in FDM Group closed up 3.03% to £425.50 (US$546.47) on July 31 in London. They were 43.75% above their 52-week low.