REG - FDM Group plc - Preliminary Results
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RNS Number : 0461X FDM Group (Holdings) plc 18 March 2026
FDM Group (Holdings) plc
Preliminary Results
FDM Group (Holdings) plc ("the Company") and its subsidiaries (together "the
Group" or "FDM"), today announces its results for the year ended 31 December
2025.
Commenting on current trading and outlook, Rod Flavell, Chief Executive
Officer, said:
"We continue to see encouraging signs in some of the markets we serve, albeit
levels of confidence and activity vary across our geographies. Recent events
in the Middle East clearly add to the levels of economic, political and market
uncertainty, but the Board is optimistic that areas of the Group less impacted
will continue to experience the modest uptick in activity seen over recent
months.
We are seeing increasing client appetite for AI-enabled skills, from
automation and data readiness to governance and model oversight. Our scalable
coaching model, with AI literacy embedded across our Practices, early career
talent pipeline and existing track record in AI-enabled projects mean we are
well positioned to respond to these opportunities as they develop.
The Board remains focused on positioning FDM to return to sustainable growth
across the Group as soon as market conditions permit, and we continue to align
resources carefully by region, in line with current and anticipated demand,
while applying rigorous cost management and taking a prudent approach to
investment."
31 December 2025 31 December 2024 % change
Revenue £177.7m £257.7m -31%
Adjusted operating profit(1) £13.6m £33.4m -59%
Profit before tax £7.6m £28.1m -73%
Adjusted profit before tax(1) £13.7m £34.0m -60%
Basic earnings per share 5.2p 18.8p -72%
Adjusted basic earnings per share(1) 10.0p 23.0p -57%
Cash flow generated from operations £21.9m £33.1m -34%
Cash position at year end £35.3m £40.6m -13%
Cash conversion(2) 292% 121% +141%
Adjusted cash conversion(2) 200% 116% +72%
Share-based payment expense £0.2m £1.1m -82%
Exceptional administrative expenses £2.6m £4.9m -47%
Effective income tax rate 25.8% 26.9% -4%
Dividend per share 10p 22.5p -56%
· A resilient performance in 2025 against a backdrop of continued
challenging market conditions.
· The Group saw improved signs of appetite for investment from an
appreciable number of clients across some key geographies in the latter part
of the year, but geopolitical and economic uncertainty remains.
· Revenue decreased by 31% to £177.7 million (2024: £257.7
million) and profit before tax decreased by 73% to £7.6 million (2024: £28.1
million).
· Consultants assigned to clients at the end of 2025(3) were 22%
lower at 2,003 (end of 2024: 2,578). The split by region was: UK 910 (2024:
1,056); North America 500 (2024: 742); EMEA 124 (2024: 256); and APAC 469
(2024: 524).
· Consultant utilisation rate(4) was broadly unchanged at 92.7%
(2024: 92.9%). Benefiting from the Group's agile business model, steps were
taken throughout the year to align, as far as practicable, available resource
to market demand. Consultant recruitment and the number of Consultants in our
Skills Lab reduced and coaching completions were 828 (2024: 877).
· We remain focused on managing our cost base. We incurred
exceptional costs of £2.6 million (2024: £4.9 million) as we better aligned
our internal staff and unassigned Consultants with current market dynamics.
· During the year we successfully launched our sales transformation
programme to ensure we are appropriately positioned to respond to emerging
opportunities and evolving client demand. This is focused on: developing our
sales structure; enabling new products and services; and accelerating the
adoption of AI across the business, both internally and as part of our client
offering.
· We secured 45 new clients globally (2024: 52), 31 of which were
outside the financial services sector.
· We maintain a robust balance sheet, with £35.3 million cash at
year end (2024: £40.6 million) and no debt.
· Cash conversion(2) was 292% (2024: 120%). Adjusted cash
conversion(2) was 200% (2024: 116%); adjusted cash conversion(2) including
lease payments was 155% (2024: 99%).
· The Board recommends a final dividend of 4.0 pence per share,
following an interim dividend of 6.0 pence per share, a total dividend for the
year of 10.0 pence per share (2024: 22.5 pence per share).
( )
( )
(1)( ) Adjusted operating profit and adjusted profit before tax are
calculated before; i) Share Plan expense of £0.2 million (2024: £1.1
million); ii) exceptional costs of £2.6 million (2024: £4.9 million ) as we
continued to align our internal staff and available resource with market
demand; and iii) the EMEA goodwill and asset impairment charge of £3.3
million (2024: £nil) (see note 8). The adjusted basic earnings per share is
calculated before the impact, net of tax of; i) Share Plan expenses; ii)
exceptional costs; and iii) the EMEA goodwill and asset impairment charge.
(2 ) Cash conversion is calculated by dividing cash flows generated from
operations by operating profit. The adjusted cash conversion is calculated by
dividing cash flows generated from operations by operating profit adjusted for
i) Share Plan expenses of £0.2 million (2024: £1.1 million) and ii) the EMEA
goodwill and asset impairment charge of £3.3 million (2024: £nil) as these
are non-cash items.
(3) 2025 figure taken from week commencing on 15 December 2025. 2024 figure
taken from week commencing on 30 December 2024.
(4) The business uses the metric 'Consultant utilisation' to monitor all
deployed Consultants. Utilisation rate is calculated as the ratio of the cost
of deployed Consultants to the total Consultant payroll cost.
Enquiries
For further information:
FDM Rod Flavell - CEO 0203 056 8240
Mike McLaren - CFO 0203 056 8240
Nick Oborne 07850 127526
(financial public relations)
Forward-looking statements
This announcement contains statements which constitute "forward-looking
statements". Although the Group believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no assurance that
these expectations will prove to be correct. Because these statements involve
risks and uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements.
We are FDM
FDM Group (Holdings) plc ("the Company" or "FDM") and its subsidiaries
(together "the Group" or "FDM") form a global professional services provider
with a focus on IT.
We are a global leader in tech and business talent solutions. We drive
transformation through AI-enabled talent, supporting future-focused businesses
to achieve ambitious goals.
INTRODUCTION
Against a background of continued uncertainty across all our major markets,
the Group delivered an adjusted profit before tax(1) of £13.7 million (2024:
£34.0 million). FDM's balance sheet remains strong with closing cash balances
of £35.3 million (2024: £40.6 million) and no debt. The Group made dividend
payments during the year of £20.3 million (2024: £31.7 million).
Overview
The widely reported difficult market conditions, which we have been
experiencing since early 2023, persisted through 2025, continuing to undermine
client confidence and impacting the length of their decision cycles and demand
for our Consultants. In the last four months of the year we saw a slight
uptick in client activity levels. These trends have continued into the early
months of 2026. However, economic and geopolitical uncertainty remains, which
has been exacerbated by recent events in the Middle East.
While the macroeconomic environment is not something we can control, in
periods of challenging market conditions we are able to benefit from the
scalability inherent in our business model, enabling us to manage our cost
base. During 2025, our levels of experienced Consultant resource and
Consultant recruitment were closely managed to ensure our available resource
remained aligned to client demand. The proportion of experienced Consultants
remained higher than historic averages as some clients are actively seeking
more experienced resource (some of which we are able to fulfil from our
extensive alumni population). We also reduced our internal headcount to align
better our business operations to market conditions.
We ended the year with 2,003 Consultants placed with clients (2024: 2,578) and
828 Consultants were coached during the year (2024: 877). The Group recorded
revenue of £177.7 million (2024: £257.7 million) and delivered an adjusted
operating profit(1) of £13.6 million (2024: £33.4 million). We incurred
exceptional costs of £2.6 million (2024: £4.9 million) relating to the
measures taken to align the number of undeployed Consultants and internal
staff with current market demand. We also recognised a goodwill and asset
impairment charge of £3.3 million in respect of EMEA. As disclosed in note 8,
EMEA generated a loss before income tax in the year.
A major focus of 2025 was ensuring our Consultants have the appropriate skills
and knowledge in the various AI tools, methodologies and advancements as we
believe that the opportunities presented in this space will grow over time.
The Group's balance sheet remains robust with cash balances of £35.3 million
(2024: £40.6 million). The Group has no debt.
The strength of our financial position, together with the actions we continue
to take to manage our operating costs, mean we remain well positioned to
benefit from market recovery when it comes.
Our strategy
FDM's strategy remains to deliver customer-led, sustainable, profitable growth
on a consistent basis through our established and proven business model. Our
strategy requires that all activities and investments that are undertaken have
the potential to produce the appropriate level of return on investment, that
they deliver sustained and measurable improvements for all our stakeholders
including clients, staff and shareholders, and that they further our objective
of launching the careers of talented people worldwide.
For over 30 years we have helped our clients navigate the latest trends in
technology and operations while maintaining and supporting their current and
legacy systems. Towards the end of 2025, we embarked on a sales transformation
programme to ensure we are best placed to respond to emerging opportunities
and evolving client demands. The programme is focused on: evolving our sales
structure; enabling new AI-focused products and services that will drive
growth and shareholder value; and accelerating the internal adoption of AI
across our business. This important initiative will ensure we are better
placed to deliver on our strategic objectives.
Our four key strategic objectives are: attract and develop talented
Consultants; invest in state-of-the-art Skills Labs to provide expert
training; grow and diversify our client base; and expand our geographic
presence through sustainable and efficient means.
(1) The adjusted operating profit is calculated before; i) Share Plan expenses
ii) exceptional costs as we continued to align our internal staff and
available resource with market demand and iii) the EMEA goodwill and asset
impairment charge.
Strategic objectives
Attract and develop talented Consultants
With challenging market conditions continuing throughout 2025, our levels of
Consultant recruitment remained under close review to ensure that our
available resource aligned, as far as practicable, with client demand across
our operating locations. A key strength of our business model is that it
allows us to flex recruitment and coaching and react quickly to changing
levels of client demand, while at the same time continuing to manage our
workforce so that we are well positioned to capitalise on opportunities when
conditions improve. In the latter part of the year, we cautiously increased
the volume of Consultants in training in the UK, North America and Australia
in response to a degree of pickup in activity levels. We delivered 828
coaching completions in the year (2024: 877).
The strength of our University Partner relationships and our Ex-Forces and
Returners Programmes will enable us to increase recruitment and training when
market conditions and client demand improve. We continued to generate high
numbers of applications across all our operating locations, with applicants
seeking the benefits of FDM's market-leading, flexible coaching. Our extensive
alumni population also means that we can include more experienced individuals
in our offering to clients, either individually or as part of our
cross-functional pods which include individuals with a blend of experience. We
have an excellent pipeline of assessed candidates, looking to join our Skills
Labs as and when we see an uptick in market demand.
Invest in state-of-the-art Skills Labs to provide expert training
We continued to invest in state-of-the-art Skills Labs during 2025,
reinforcing our commitment to delivering expert, skills-based learning which
is aligned with evolving client needs. Building on the FDM Practices
methodology introduced in 2024, we enhanced our ability to respond to clients
seeking more specific, detailed, and nuanced skillsets within each job role.
This dynamic, experiential model ensures Consultants undergo continuous
assessment while completing core and specialised sprints designed around
client requirements. These sprints are led by highly experienced coaches and
supported by industry-leading third-party assessment platforms and AI tools.
A key advancement in 2025 was the global rollout of HackerRank, a standardised
and scalable global assessment platform. HackerRank enables objective
evaluation across the Consultant lifecycle - from recruitment and Skills Lab
coaching to post-deployment - providing consistent benchmarking and
data-driven decision-making.
2025 also marked a significant evolution in how FDM embeds AI learning and
enablement into our Skills Lab coaching ecosystem. We recognise that AI is
becoming a baseline expectation rather than a specialist skill. The following
are examples of changes we made during the year as we move towards global
standardisation of all our AI learning initiatives:
· AI Fluency Programme expansion - We successfully delivered AI
Fluency sprints across UK and EMEA, equipping bench Consultants with
foundational AI knowledge and hands-on experience. These sessions focus on
practical applications of AI in business and technology, ensuring Consultants
are prepared for AI-driven environments.
· Launch of Prompt Engineering sprint - This sprint develops
practical expertise in crafting effective prompts for generative AI tools - a
critical skill for improving productivity and solution quality.
· Embedding AI across all learning pathways - Unlike in 2024, where
AI training was delivered via standalone modules, in 2025 we integrated AI
concepts into practice sprints and coaching activities across all specialisms.
This ensures consistent reinforcement of AI skills and mindset throughout the
consultant journey.
· AI enhanced assessment and coaching - We leveraged AI-driven
analytics within HackerRank and other platforms to provide real-time feedback,
personalised learning paths, and predictive insights on Consultant
performance, creating a more adaptive and data-informed training model.
· Global knowledge sharing - In 2025, we established a
cross-regional AI learning framework, sharing
best practices and sprint designs globally to maintain consistency and
scalability across all our regions.
The FDM Practices framework continues to develop our Consultants into
multi-skilled professionals who deliver maximum value to clients navigating
rapid technological change.
Our five areas of specialism remain:
· Software Engineering - Building robust, scalable software using
modern technologies and agile methods.
· Change & Transformation - Guiding organisations through
complex change with strong project management and problem-solving skills.
· Data & Analytics - Leveraging advanced analytics, BI tools,
and machine learning to extract insights and drive competitive advantage.
· IT Operations - Ensuring secure, efficient IT systems through
expertise in system administration, network management, and cybersecurity.
· Risk, Regulation & Compliance - Managing risk and compliance
to safeguard organisational reputation and stakeholder trust.
Grow and diversify our client base
We continue to deliver the highest level of service to our clients and work
closely with them to meet their requirements. Client diversification remains a
key part of our strategy and we secured 45 new clients in the year (2024: 52),
of which 31 were in the UK, three in North America, three in EMEA and eight in
APAC. Of these new clients, 69% were secured from outside the financial
services sector. In addition, we placed Consultants with 26 clients who had
not used our services recently.
Expand our geographic presence through sustainable and efficient means
The expansion and consolidation of our geographic presence remains a key
growth driver for the Group. While the move to remote delivery of our Skills
Lab coaching allows us to reduce the size and cost of our physical footprint
worldwide, we retain a strong management and sales presence across all our
main operating regions, as we focus on delivering sustainable growth across
the Group as and when market conditions improve.
GROUP RESULTS
Summary income statement
Year ending Year ending % change
31 December 2025 31 December 2024
Revenue £177.7m £257.7m -31%
Exceptional administrative expenses £2.6m £4.9m -47%
Goodwill and asset impairment charge £3.3m £nil n/a
Adjusted operating profit(1) £13.6m £33.4m -59%
Operating profit £7.5m £27.4m -73%
Adjusted profit before tax(1) £13.7m £34.0m -60%
Profit before tax £7.6m £28.1m -73%
Adjusted basic EPS(1) 10.0p 23.0p -57%
Overview
Against continuing challenging market conditions, the Group delivered another
resilient performance in 2025. Revenue decreased by 31% to £177.7 million
(2024: £257.7 million) (30% lower on a constant-currency basis(2)), adjusted
operating profit(1) decreased by 59% to £13.6 million (2024: £33.4 million),
and adjusted basic earnings per share(1) was down 57%, to 10.0 pence (2024:
23.0 pence). Adjusted operating profit includes a significant recurring cash
inflow which was received in the first half of the year. This represents a
larger proportion of adjusted operating profit in 2025 compared to prior
years. We ended the year with cash balances of £35.3 million (2024: £40.6
million), having converted 292.3% of our operating profit into operating cash
flow. Our balance sheet remains strong with no debt. We are well positioned
for growth when market conditions improve, with a proven and agile business
model that is able to respond rapidly and effectively to market fluctuations.
Consultants assigned to clients at the end of 2025 totalled 2,003, a decrease
of 22% from 2,578 at the end of 2024. At the end of 2025 our Ex-Forces
Programme accounted for 51 Consultants deployed worldwide (end of 2024: 105).
Our Returners Programme had 131 Consultants deployed at the end of 2025 (end
of 2024: 164).
The Consultant utilisation rate was consistent with the prior year at 92.7%
(2024: 92.9%).
An analysis of revenue and headcount by region is set out in the table below:
Year ending Year ending 2025 2024
31 December 2025 31 December 2024 Consultants Consultants
Revenue Revenue assigned assigned
£m £m to clients(3) to clients(3)
UK 88.4 104.0 910 1,056
North America 45.8 92.2 500 742
EMEA 15.0 21.9 124 256
APAC 28.5 39.6 469 524
177.7 257.7 2,003 2,578
Administrative expenses decreased to £66.7 million (2024: £87.5 million).
Included within administrative expenses are £2.6 million of exceptional costs
(2024: £4.9 million), representing the costs of terminating the employment of
internal staff and undeployed Consultants. Adjusted Group operating margin(1)
decreased to 7.6% (2024: 13.0%).
(1) The adjusted operating profit and adjusted profit before tax are
calculated before; i) Share Plan expenses of £0.2 million (2024: £1.1
million); ii) exceptional costs of £2.6 million (2024: £4.9 million) as we
continued to align our internal staff and available resource with market
demand; and iii) the EMEA goodwill and asset impairment charge of £3.3
million (2024: £nil). The adjusted basic earnings per share is calculated
before the impact, net of tax of; i) Share Plan expenses ii) exceptional
costs; and iii) the EMEA goodwill and asset impairment charge.
(2) The constant-currency basis is calculated by translating current-year and
prior-year reported amounts into comparable amounts using the 2025 average
exchange rate for each currency. The presentation of the constant-currency
basis provides a better understanding of the Group's trading performance by
removing the impact on revenue of movements in foreign exchange.
(3) 2025 figure taken from week commencing on 15 December 2025. 2024 figure
taken from week commencing on 30 December 2024.
Adjusting items
The Group presents adjusted results, in addition to the statutory results, as
the Directors consider that they provide a useful indication of underlying
trading performance and cash generation. The adjusted results are stated
before; i) share-based payment expense including associated taxes and social
security costs ii) exceptional administrative expenses relating to terminating
the employment of internal staff and undeployed Consultants; and iii) the
goodwill impairment charge incurred in respect of EMEA.
Share-based payment
The share-based payment charge is based on estimates relating to a vesting
which may occur up to three years after the date of grant and the assumptions
underpinning those estimates can change from year to year. A net expense of
£0.2 million was recognised in the year relating to the share-based payments
including social security costs, with a credit of £0.3 million in relation
the Performance Share Plan offset against £0.5 million expense in respect of
the Buy As You Earn ("BAYE") Plan, which saw an increased expense as the Plan
was closed during 2025 with all share matching completed in the year (2024:
expenses of £1.1 million, including expenses of £0.2 million in respect of
the BAYE Plan).
Exceptional administrative expenses
During the year, the Group incurred exceptional administrative expenses of
£2.6 million (2024: £4.9 million), as a result of the Group taking measures
to align better the number of undeployed Consultants and internal staff with
current market demand.
Impairment of goodwill and assets
A goodwill and asset impairment charge of £3.3 million was recognised during
the year in relation to EMEA (2024: £nil). As disclosed in note 8, EMEA
generated a loss before income tax in the year. The goodwill and assets of
EMEA were assessed and subsequently impaired.
Net finance income
Net finance income includes bank interest income of £1.6 million (2024: £1.9
million) and lease liability interest of £1.3 million (2024: £1.2 million).
The Group has no debt.
Taxation
The Group's total tax charge for the year was £2.0 million, equivalent to an
effective tax rate of 25.8%, on profit before tax of £7.6 million (2024:
effective tax rate of 26.9% based on a tax charge of £7.6 million and a
profit before tax of £28.1 million). The effective tax is broadly equivalent
to the underlying UK tax rate of 25%.
Earnings per share
Basic earnings per share decreased in the year to 5.2 pence (2024: 18.8
pence), while adjusted basic earnings per share was 10.0 pence (2024: 23.0
pence). Diluted earnings per share was 5.2 pence (2024: 18.7 pence).
Dividend
During the year, the Group paid two dividends with a total payment to
shareholders of £20.3 million (2024: £31.7 million).
At the AGM, held on 20 May 2025, a final dividend of 12.5 pence per share for
2024 was approved by shareholders and was paid on 27 June 2025. On 29 July
2025, an interim dividend of 6.0 pence per share for 2025 was declared and was
paid on 14 November 2025.
The Board has recommended a final dividend of 4.0 pence per share, subject to
shareholder approval at the 2026 AGM, taking the total dividend arising from
the 2025 financial year to 10.0 pence per share (2024 total dividend: 22.5
pence per share).
The Group maintains its dividend policy, to retain sufficient capital to fund
ongoing operating requirements, while maintaining an appropriate level of
dividend cover and sufficient funds to invest in the Group's longer-term
growth. As at 31 December 2025, the Company had distributable reserves of
£23.3 million. This statement does not form part of the audited financial
statements and the distributable reserves figure of £23.3 million is
therefore not audited by PricewaterhouseCoopers LLP ("PwC").
Cash flows and Statement of Financial Position
At the year end the Group's cash balance was £35.3 million (2024: £40.6
million). Dividends paid in the year totalled £20.3 million (2024: £31.7
million). Capital expenditure was £0.2 million (2024: £0.3 million) and tax
paid was £2.7 million (2024: £5.8 million). Our business model remains
highly cash generative. Cash conversion was 292% (2024: 121%) due to
continuing strong working capital management by the Group, the impact of our
lease payments not being classified as operational, and the effect of the add
back of the non-cash EMEA goodwill and asset impairment charge. Adjusted cash
conversion was 200% (2024: 116%). Adjusted cash conversion, including lease
payments was 155% (2024: 99%).
Debtor days at the year-end were in line with Group targets, as they were in
the prior year.
SEGMENTAL PERFORMANCE
UK
Year-end Consultant headcount was 910, a decrease of 14% on the prior year
(2024: 1,056). Revenue decreased by 15% to £88.4 million (2024: £104.0
million) and adjusted operating profit(1) decreased by 40% to £11.2 million
(2024: £18.8 million).
The UK market remained challenging in 2025. The proportion of experienced
Consultants remained higher than historic averages, reflecting both the
restrictions imposed by our clients' budgets on their ability to internalise
our Consultants as permanent hires, and an appetite for the skills that more
experienced Consultants bring. Operational performance was similar to 2024 and
we therefore coached a similar number of Consultants (2025: 198, 2024: 200).
We continued to closely manage our cost base and we incurred £1.5 million of
exceptional costs (2024: £3.6 million) associated with measures taken to
better align the number of benched Consultants and internal staff with demand.
Business development remains promising and we opened 31 new clients in the
year (2024: 28).
North America
Year-end Consultant headcount was 500, a decrease of 33% on the prior year
(2024: 742), partly reflecting, as previously highlighted, a major client's
restructuring of its operations following internal regulatory compliance
failures unrelated to FDM's services. Revenue decreased by 50% to £45.8
million (2024: £92.2 million) and adjusted operating profit(1) decreased by
81% to £2.2 million (2024: £11.7 million).
As in the UK, challenging market conditions continued into 2025. In 2024, the
headcount reductions were concentrated later in the year, which meant that
full year revenue did not decline as much as end of year headcount. As a
result, the year‑on‑year impact on revenue in 2025 is more significant,
with revenue falling 50% compared to a 33% drop in headcount.
We continued to closely manage our cost base and during the period we incurred
£0.2 million of exceptional costs (2024: £0.8 million) associated with the
measures taken to better align the number of benched Consultants and internal
staff with current demand. An increase in client demand towards the end of the
year was reflected in our coaching completions as we coached 218 Consultants
in the second half of 2025 compared with 114 in the first half. Across the
full year, we coached a similar number of Consultants to 2024 (2025: 332,
2024: 330).
During the year we gained three new clients (2024: eight).
EMEA (Europe, Middle East and Africa, excluding UK)
Year-end Consultant headcount was 124, a decrease of 52% on the prior year
(2024: 256). Revenue decreased by 32% to £15.0 million (2024: £21.9 million)
and adjusted operating profit(1) decreased by 92% to £0.1 million (2024:
£1.3 million).
During the period we carried a higher than typical number of undeployed
Consultants which contributed towards adjusted operating profit decreasing by
more than headcount. Headcount and exceptional costs were impacted by the
early conclusion of a client project in Germany. Exceptional costs associated
with measures taken to better align the number of benched Consultants and
internal staff with current demand were £0.8 million (2024: £0.1 million).
During the year, we coached 95 Consultants (2024: 138) and gained three new
clients (2024: five).
APAC (Asia Pacific)
Year-end Consultant headcount was 469, a decrease of 10% on the prior year
(2024: 524). Revenue decreased by 28% to £28.5 million (2024: £39.6 million)
and adjusted operating profit(1) decreased by 94% to £0.1 million (2024:
£1.6 million).
Similar to elsewhere in the Group, challenging market conditions persisted in
2025 and we coached a similar number of Consultants year on year (2025: 203,
2024: 209). During the period we entered the Malaysian market, with a small
number of Consultants placed at year end.
During the period we incurred £0.1 million of exceptional costs (2024: £0.4
million) associated with the measures taken to better align the number of
benched Consultants and internal staff with current demand.
We opened eight new clients in the year (2024: 11).
The Board and its Committees
Michelle Senecal de Fonseca (Non-Executive Director) retired from the Board
with effect from 19 March 2025, having served more than nine years since her
appointment. On the same date, Bruce Lee was appointed as an independent Non-
Executive Director. Based in the US, Bruce has wide experience in CIO roles
with global banks, financial institutions and other organisations (including
some which historically have been FDM clients). He has an in-depth
understanding of FDM's model, the sectors we operate in, and the technologies
which are key to those sectors.
Following a thorough selection process led by the Nomination Committee, which
involved consideration of internal and external candidates, Alan Kinnear was
appointed as Non-Executive Chair of the Board with effect from 30 July 2025,
succeeding David Lister in the role following his retirement from the Board on
the same date, having served more than nine years since his appointment to the
Board in March 2016. Alan Kinnear joined the Board of FDM Group in January
2020 as an independent Non-Executive Director, becoming Chair of the Audit
Committee in April 2020.
Progressing our ESG initiatives
We remain committed to promoting diversity, social mobility and inclusion
within our workplace, as evidenced in the People and Communities section of
the Annual Report. We are highly supportive of our Employee Networks, our
charity partners and our various career development and leadership training
programmes.
During the year, FDM joined the United Nations Global Compact ('UNGC'),
committing the Group to promote and communicate regularly on its ongoing
sustainability actions and evidencing our commitment to meeting our
sustainability targets.
Delivering our science-based GHG emission reduction targets remains an area of
focus. Our total annual GHG emissions are low at below 1 tCO(2)e per employee;
however, we are not complacent and remain focused on taking action to reduce
our GHG emissions.
Our people
FDM is a people business, and the Board is proud of the passion and commitment
which our people across our operating regions ceaselessly offer the Group.
The wellbeing of all our people remains a key priority for the Board. The
People Team continues to engage with employees, to ensure that their wellbeing
is monitored and safeguarded, particularly during this period of extended
market uncertainty. Our recent employee survey results showed encouraging
feedback and has been useful in identifying employees' priorities.
The Board would like to extend its thanks to every FDM employee for their
hard work during 2025, which has enabled us to deliver a resilient
performance, in challenging market conditions.
CURRENT TRADING AND OUTLOOK
We continue to see encouraging signs in some of the markets we serve, albeit
levels of confidence and activity vary across our geographies. Recent events
in the Middle East clearly add to the levels of economic, political and market
uncertainty, but the Board is optimistic that areas of the Group less impacted
will continue to experience the modest uptick in activity seen over recent
months.
We are seeing increasing client appetite for AI-enabled skills, from
automation and data readiness to governance and model oversight. Our scalable
coaching model, with AI literacy embedded across our Practices, early career
talent pipeline and existing track record in AI-enabled projects mean we are
well positioned to respond to these opportunities as they develop.
The Board remains focused on positioning FDM to return to sustainable growth
across the Group as soon as market conditions permit, and we continue to align
resources carefully by region, in line with current and anticipated demand,
while applying rigorous cost management and taking a prudent approach to
investment.
Consolidated Income Statement
for the year ended 31 December 2025
Note 2025 2024
£000 £000
Revenue 3 177,727 257,704
Cost of sales (100,247) (142,754)
Gross profit 77,480 114,950
Administrative expenses (66,708) (87,511)
which includes:
Exceptional items 4 (2,604) (4,894)
Impairment loss (3,272) -
Operating profit 7,500 27,439
Finance income 1,568 1,927
Finance expense (1,425) (1,304)
Net finance income 143 623
Profit before income tax 7,643 28,062
Taxation 6 (1,974) (7,555)
Profit for the year 5,669 20,507
Earnings per ordinary share
2025 2024
pence pence
Basic 7 5.2 18.8
Diluted 7 5.2 18.7
The results for the year shown above arise from continuing operations.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
2025 2024
£000 £000
Profit for the year 5,669 20,507
Other comprehensive (expense)/ income
Items that may be subsequently reclassified to profit or loss
Exchange differences on retranslation of foreign operations (net of tax) (887) 494
Total other comprehensive (expense)/ income (887) 494
Total comprehensive income for the year 4,782 21,001
Consolidated Statement of Financial Position
as at 31 December 2025 2025 2024
Note £000 £000
Non-current assets
Right-of-use assets 16,963 19,614
Property, plant and equipment 1,389 1,974
Intangible assets 16,501 19,464
Deferred income tax assets 209 481
35,062 41,533
Current assets
Trade and other receivables 9 18,526 28,532
Income tax receivables 836 797
Cash and cash equivalents 10 35,282 40,588
54,644 69,917
Total assets 89,706 111,450
Current liabilities
Trade and other payables 11 16,898 20,734
Lease liabilities 5,068 4,586
Current income tax liabilities 54 1,010
22,020 26,330
Non-current liabilities
Lease liabilities 14,841 17,122
Provisions 699 658
15,540 17,780
Total liabilities 37,560 44,110
Net assets 52,146 67,340
Equity attributable to owners of the parent
Share capital 12 1,097 1,097
Share premium 9,705 9,705
All Other reserves 1,835 2,525
Retained earnings 39,509 54,013
Total equity 52,146 67,340
Consolidated Statement of Cash Flows
for the year ended 31 December 2025
Note 2025 2024
£000 £000
Cash flows from operating activities
Group profit before tax for the year 7,643 28,062
Adjustments for:
Impairment loss 3,272 -
Depreciation and amortisation 5 5,113 5,405
Loss/ (profit) on disposal of non-current assets 1 (167)
Finance income (1,568) (1,927)
Finance expense 1,425 1,304
Share-based payment charge (including associated social security costs) 179 1,202
Decrease in trade and other receivables 9,655 3,864
Decrease in trade and other payables (3,796) (4,635)
Cash flows generated from operations 21,924 33,108
Interest received 1,568 1,927
Income tax paid (2,671) (5,796)
Net cash inflow from operating activities 20,821 29,239
Cash flows from investing activities
Acquisition of property, plant and equipment (188) (335)
Net cash used in investing activities (188) (335)
Cash flows from financing activities
Proceeds from issuance of ordinary shares - 1
Proceeds from sale of shares from EBT 145 299
Principal elements of lease payments (3,649) (3,676)
Interest elements of lease payments (1,339) (1,225)
Finance costs paid (88) (57)
Dividends paid 13 (20,273) (31,677)
Net cash used in financing activities (25,204) (36,335)
Exchange (losses)/ gains on cash and cash equivalents (735) 793
Net decrease in cash and cash equivalents (5,306) (6,638)
Cash and cash equivalents at beginning of year 40,588 47,226
Cash and cash equivalents at end of year 10 35,282 40,588
Consolidated Statement of Changes in Equity
for the year ended 31 December 2025
Share capital Share All Other reserves Retained Total
premium earnings equity
£000 £000 £000 £000 £000
Balance at 1 January 2025 1,097 9,705 2,525 54,013 67,340
Profit for the year - - - 5,669 5,669
Other comprehensive income for the year - - (887) - (887)
Total comprehensive income for the year - - (887) 5,669 4,782
Share-based payments - - 338 - 338
Transfer to retained earnings - - (2,332) 2,332 -
Own shares sold - - 2,191 (2,076) 115
Recharge of net settled share options - - - (156) (156)
Dividends (note 13) - - - (20,273) (20,273)
Issue of new shares - - - - -
Total transactions with owners, recognised directly in equity - - 197 (20,173) (19,976)
Balance at 31 December 2025 1,097 9,705 1,835 39,509 52,146
Share capital Share All Other reserves Retained Total
premium earnings equity
£000 £000 £000 £000 £000
Balance at 1 January 2024 1,096 9,705 1,567 64,303 76,671
Profit for the year - - - 20,507 20,507
Other comprehensive expense for the year - - 494 - 494
Total comprehensive income for the year - - 494 20,507 21,001
Share-based payments - - 1,108 - 1,108
Transfer to retained earnings - - (1,260) 1,260 -
Own shares sold - - 616 (317) 299
Recharge of net settled share options - - - (63) (63)
Dividends (note 13 ) - - - (31,677) (31,677)
Issue of new shares 1 - - - 1
Total transactions with owners, recognised directly in equity 1 - 464 (30,797) (30,332)
Balance at 31 December 2024 1,097 9,705 2,525 54,013 67,340
Notes to the Consolidated Financial Statements
1 General information
The Group is an international professional services provider focusing principally on IT, specialising in the recruitment, development and deployment of its own permanent Consultants.
The Company is limited by shares, incorporated and domiciled in the UK and
registered as a public limited company in England and Wales with a Listing on
the London Stock Exchange. The Company's registered office is 3rd Floor,
Cottons Centre, Cottons Lane, London, SE1 2QG and its registered number is
07078823.
The financial statements of the Group have been prepared in accordance with
UK-adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
The Consolidated Financial Statements have been prepared on a historical cost
basis. The Consolidated Financial Statements are presented in Pounds Sterling
and all values are rounded to the nearest thousand (£000), except where
otherwise indicated.
2 Basis of preparation
The financial information set out in this preliminary announcement does not
constitute statutory accounts for the years ended 31 December 2025 and 31
December 2024, for the purpose of the Companies Act 2006, but is derived from
those accounts. The audited statutory accounts for 2024 have been delivered to
the Registrar of Companies and those for 2025 were approved for issue on 17
March 2026. The Group's auditor reported on the Annual Report and Accounts for
the year ended 31 December 2025 on 17 March 2026. Their report was
unqualified, did not draw attention to any matters by way of emphasis without
qualifying their report and did not contain statements under Section 498(2) or
(3) of the Companies Act 2006.
While the financial information included in this preliminary announcement has
been prepared in accordance with UK-adopted International Financial Reporting
Standards, this announcement does not itself contain sufficient information to
comply with UK-adopted International Financial Reporting Standards. The
accounting policies applied in preparing this financial information are
consistent with the Group's financial statements for the year ended 31
December 2024 with the exception of the following standards and amendments
which were effective from 1 January 2025 and were adopted by the Group in
preparing the financial statements. The adoption of these standards and
amendments has not had a material impact on the Group's financial statements
in the year:
- IAS 21 - Lack of Exchangeability (Amendments to
IAS 21)
3 Segmental reporting
Management has determined the operating segments based on the operating
reports reviewed by the Board of Directors that are used to assess both
performance and strategic decisions. Management has identified that the
Executive Directors are the chief operating decision-maker in accordance with
the requirements of IFRS 8 'Operating segments'.
As of 31 December 2025, the Board of Directors consider that the Group is
organised on a worldwide basis into four core geographical operating segments:
(1) UK;
(2) North America;
(3) Europe, Middle East and Africa, excluding UK ("EMEA"); and
(4) Asia Pacific ("APAC").
Each geographical segment is engaged in providing services within a particular
economic environment and is subject to risks and returns that are different
from those of segments operating in other economic environments.
All segment revenue, profit before taxation, assets and liabilities are
attributable to the principal activity of the Group, being a global
professional services provider with a focus on IT.
For the year ended 31 December 2025
North
UK America EMEA APAC Total
£000 £000 £000 £000 £000
Revenue 88,441 45,821 14,973 28,492 177,727
Depreciation and amortisation (1,984) (1,289) (403) (1,437) (5,113)
Exceptional administrative expenses (1,508) (224) (820) (52) (2,604)
Impairment loss - - (3,272) - (3,272)
Segment operating profit/ (loss) 9,578 1,950 (4,040) 12 7,500
Finance income¹ 1,638 128 1 - 1,767
Finance costs¹ (1,063) (147) (50) (364) (1,624)
Profit/ (loss) before income tax 10,153 1,931 (4,089) (352) 7,643
As at 31 December 2025
Total assets 53,846 17,902 5,601 12,357 89,706
Total liabilities (9,256) (5,962) (6,366) (15,976) (37,560)
¹ Finance income and finance costs include intercompany interest which is
eliminated upon consolidation.
Included in total assets above are non-current assets (excluding deferred tax)
as follows:
UK North EMEA APAC Total
America
£000 £000 £000 £'000 £000
31 December 2025 27,795 4,010 - 3,048 34,853
The following foreign entities, which are 100% owned subsidiaries, are
material by their size at 31 December 2025:
Entity name FDM Group Inc. FDM Group Canada Inc.
Country of registration USA Canada
£000 £000
Revenue 27,831 17,990
Non-current assets (excluding deferred tax) 1,714 638
For the year ended 31 December 2024
North
UK America EMEA APAC Total
£000 £000 £000 £000 £000
Revenue 103,985 92,188 21,923 39,608 257,704
Depreciation and amortisation (2,135) (1,356) (368) (1,546) (5,405)
Exceptional administrative expenses (3,636) (780) (86) (392) (4,894)
Segment operating profit 14,512 10,666 1,186 1,075 27,439
Finance income¹ 1,842 280 15 6 2,143
Finance costs¹ (897) (149) (51) (423) (1,520)
Profit before income tax 15,457 10,797 1,150 658 28,062
As at 31 December 2024
Total assets (restated)(2) 63,589 20,714 12,442 14,705 111,450
Total liabilities (12,325) (7,461) (7,177) (17,147) (44,110)
¹ Finance income and finance costs include intercompany interest which is
eliminated upon consolidation
(2) Total assets have been restated for UK, North America and EMEA to reflect
the disclosure of the allocation of goodwill to the segment in which it was
originally generated. Previously goodwill had been disclosed as part of the UK
segment. The restated total assets reflect £4,621,000 decrease in the UK,
£1,778,000 increase in North America and £2,843,000 increase in EMEA.
Included in total assets above are non-current assets (excluding deferred tax)
as follows:
North
UK America EMEA APAC Total
£000 £000 £000 £000 £000
31 December 2024 (restated) 29,487 3,674 3,422 4,469 41,052
Non-current assets (excluding deferred tax) have been restated for UK, North
America and EMEA to disclose goodwill in the region to which it was originally
generated. Previously, all goodwill had been disclosed in the UK region. The
restated non-current assets (excluding deferred tax) reflect £4,621,000
decrease in the UK, £1,778,000 increase in North America and £2,843,000
increase in EMEA. Goodwill is disclosed in note 8.
The following foreign entities, which are 100% owned subsidiaries, are
material by their size at 31 December 2024:
Entity name FDM Group Inc. FDM Group Canada Inc. FDM Group
Australia Pty Ltd
Country of registration: USA Canada Australia
£000 £000 £000
Revenue 48,317 43,871 15,976
Non-current assets (excluding deferred tax) 1,041 855 3,245
4 Exceptional administrative expenses
During the year, the Group incurred exceptional costs of £2.6 million (2024:
£4.9 million) as we better aligned our internal staff and undeployed
Consultants with market demand.
5 Operating profit
Operating profit for the year has been arrived at after charging/ (crediting):
2025 2024
£000 £000
Net foreign exchange differences (197) 369
Loss on disposal of property, plant and equipment 4 3
Loss/ (profit) on disposal of right-of-use assets (3) (170)
Goodwill impairment 2,992 -
Asset impairment 280 -
Depreciation of right-of-use assets 4,396 4,547
Depreciation of property, plant and equipment 717 858
Expense relating to short-term leases - 49
6 Taxation
The major components of income tax expense for the years ended 31 December
2025 and 2024 are:
2025 2024
£000 £000
Current income tax:
Current income tax charge 3,535 8,254
Adjustments in respect of prior periods (1,821) (731)
Total current income tax 1,714 7,523
Deferred tax:
Relating to origination and reversal of temporary differences 260 32
Total deferred tax 260 32
Total tax expense reported in the income statement 1,974 7,555
The standard rate of corporation tax in the UK is 25%, accordingly, the
profits for 2025 are taxed at 25% (2024: 25%). The tax charge for the year is
higher (2024: higher) than the standard rate of corporation tax in the UK. The
differences are set out below:
2025 2024
£000 £000
Profit before income tax 7,643 28,062
Profit before income tax multiplied by UK standard rate of corporation tax of 1,911 7,016
25% (2024: 25%)
Effect of different tax rates on overseas earnings 215 403
Effect of expenses not deductible for tax purposes 372 287
Non‑deductible goodwill impairment 748 -
Adjustments in respect of prior periods (1,821) (731)
Effect of unused tax losses not recognised for deferred tax assets 549 580
Total tax charge 1,974 7,555
7 Earnings per ordinary share
Basic earnings per share are calculated by dividing the profit attributable to
ordinary equity holders of the Parent Company by the weighted average number
of ordinary shares in issue during the year.
2025 2024
Profit for the year £000 5,669 20,507
Average number of ordinary shares in issue (thousands) 109,497 109,224
Basic earnings per share Pence 5.2 18.8
Adjusted basic earnings per share are calculated by dividing the profit
attributable to ordinary equity holders of the Parent Company, excluding (i)
Performance Share Plan expenses (including social security costs and
associated deferred tax) (ii) exceptional costs relating to terminating the
employment of internal staff and undeployed Consultants (including associated
tax) and (iii) the EMEA goodwill and asset impairment charge, by the weighted
average number of ordinary shares in issue during the period.
2025 2024
Profit for the year (basic earnings) £000 5,669 20,507
Share-based payment expense (including social security costs) £000 184 1,063
Tax effect of share-based payment expense £000 (54) (210)
Exceptional costs (see note 4) £000 2,604 4,894
Tax effect of exceptional costs £000 (690) (1,164)
Impairment loss £000 3,272 -
Adjusted profit for the year £000 10,985 25,090
Average number of ordinary shares in issue (thousands) 109,497 109,224
Adjusted basic earnings per share Pence 10.0 23.0
Diluted earnings per share
Diluted earnings per share are calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The Company has one type of dilutive potential
ordinary shares in the form of share options; the number of shares in issue
has been adjusted to include the number of shares that would have been issued
assuming the exercise of the share options.
2025 2024
Profit for the year (basic earnings) £000 5,669 20,507
Average number of ordinary shares in issue (thousands) 109,497 109,224
Adjustment for share options (thousands) 131 401
Diluted number of ordinary shares in issue (thousands) 109,628 109,625
Diluted earnings per share Pence 5.2 18.7
8 Impairment of goodwill
An impairment charge of £3,272,000 in relation to the EMEA CGU was recognised
during the year (2024: £nil). As disclosed in note 3, EMEA generated a loss
before income tax in 2025. The EMEA goodwill of £2,992,000 was assessed and
subsequently impaired in full, as were fixed assets associated with the EMEA
CGU with net book value of £280,000 (right-of-use assets £228,000, leasehold
improvements £15,000 and property, plant and equipment £37,000).
9 Trade and other receivables
Due to their short-term nature, the Directors consider that the carrying
amount of trade receivables approximates to their transaction price. The
standard credit terms are 30 days.
2025 2024
£000 £000
Trade receivables 13,920 22,297
Prepayments and accrued income 3,705 5,105
Other receivables 901 1,130
18,526 28,532
10 Cash and cash equivalents
2025 2024
£000 £000
Cash at bank and in hand 35,282 40,588
11 Trade and other payables
Due to their short-term nature, the Directors consider that the carrying
amount of trade payables approximates to their fair value.
2025 2024
£000 £000
Trade payables 617 1,782
Other payables 2,393 1,773
Other taxes and social security 4,707 4,798
Accruals 9,181 12,381
16,898 20,734
12 Share capital
Authorised, called-up, allotted and fully-paid share capital
2025 2025 2024 2024
Number of £000 Number of £000
shares shares
Ordinary shares of £0.01 each
At 1 January 109,706,702 1,097 109,611,852 1,096
Issued in year 19,575 - 94,850 1
At 31 December 109,726,277 1,097 109,706,702 1,097
13 Dividends
2025 2024
£000 £000
Dividends paid
Paid to shareholders 20,273 31,677
2025
An interim dividend of 6.0 pence per ordinary share was declared by the
Directors on 29 July 2025 and was paid on 14 November 2025 to holders on the
register on 24 October 2025; the amount paid was £6,581,000.
The Board is proposing a final dividend of 4.0 pence per share in respect of
the year to 31 December 2025, for approval by shareholders at the AGM on 21
May 2026; the amount payable will be £4,338,000. Subject to shareholder
approval the dividend will be paid on 26 June 2026 to shareholders on the
register on 5 June 2026.
This brings the Company's total dividend for the year to 10.0 pence per share
(2024: 22.5 pence per share).
The Board continues to operate its dividend policy; the Group will retain
sufficient capital to fund ongoing operating requirements, maintain an
appropriate level of dividend cover and sufficient funds to invest in the
Group's longer-term growth.
2024
An interim dividend of 10.0 pence per ordinary share was declared by the
Directors on 30 July 2024 and was paid on 1 November 2024 to holders on the
register on 11 October 2024; the amount paid was £10,928,000.
The Board paid a final dividend of 12.5 pence per share on 27 June 2025, to
shareholders on the register on 6 June 2025; the amount paid was £13,692,000.
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