23rd Jul 2019 09:15
(Alliance News) - FDM Group Holdings PLC on Tuesday said its profit rose in the first half of the year as its 'Mounties' revenue continued to boost performance.
The IT consultancy and recruitment company posted GBP24.9 million pretax profit for the six months to June 30 versus GBP22.9 million the year prior, an increase of 8.7%.
The company has both freelance IT contractors and its own employees known as Mounties. The company has focused on growing Mountie numbers and revenue, while keeping freelancers "ancillary to the group".
Revenue climbed 14% to GBP134.4 million from GBP117.8 million. Within this, Mountie revenue was up 16% at GBP132.6 compared to GBP114.6 million the year before. Contractor revenue, meanwhile, dropped 44% to GBP1.8 million from GBP3.2 million as part of a "managed decline".
Administrative expenses increased to GBP39.8 million from GBP34.5 million.
FDM has declared an interim dividend of 16.0 pence per share, a 10% hike from the 14.5p per share year-on-year.
Chief Executive Rod Flavell said: "The first half has seen a strong financial performance and a good level of new client wins across a range of industries. During the second quarter we experienced lower activity in the UK government sector, in response to political uncertainties, and from a small number of financial services clients, primarily in North America. Current activity levels across both of these geographies are encouraging.
"We continue to be successful in diversifying our activities and client base across an increasing range of geographies, technologies and industry sectors. We have a strong financial position and are well placed to evolve our investment plans for each of the geographic markets in which we operate in line with local market conditions."
"We remain confident in both the outturn for the full year and continued progress thereafter."
Shares in FDM were down 2.2% at 876.00 pence on Tuesday morning.
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