29th Jan 2025 11:01
(Alliance News) - FDM Group Holdings PLC shares plunged as it said it expects market conditions to remain uncertain this year, and warned its 2025 earnings may be "below its previous expectations".
The London-based IT-focused professional services provider said it expects to report revenue for 2024 fell 23% to GBP258 million from GBP334 million.
Shares in FDM Group were down 8.5% to 242.50 pence in London on Wednesday morning.
The company said it ended the year with 2,578 consultants placed with clients, down 34% from 3,892 in 2023. It said this was lower than previously anticipated.
FDM said it "delivered a resilient performance in 2024" amid tough market conditions.
Chief Executive Officer Rod Flavell said: "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. 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.
"Consequently, the board will continue to take the appropriate measures to adjust recruitment, training, and staffing levels to align with market conditions and seek to optimise the performance of the group for all of our stakeholders."
"We opened 2025 with a lower level of consultants deployed than we had previously anticipated and this, taken with current market conditions, leads the board to anticipate that the 2025 full year financial performance may be below its previous expectations," he said.
By Michael Hennessey, Alliance News reporter
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