FDM Group PLC
12 July 2007
Embargoed for release at 7.00am 12 July 2007
FDM Group plc
("FDM" or "the Company")
Positive Trading Update
Introduction
The Board of FDM Group plc (LSE: FDMG), the IT staffing and services business,
is today providing an update to its shareholders prior to it entering its close
period ahead of the announcement of its interim results for the six months ended
30 June 2007. These interim results will be announced on 18 September 2007.
Trading Update
At the time of the Company's Annual General Meeting in May 2007, the Board
reported that trading in the first quarter of 2007 had been in line with its
expectations, with sales well ahead of the comparative first quarter of 2006.
Market conditions have remained very favourable and the Company's positive
trading has continued throughout the second quarter of the year, with several
new clients won, including The European Bank for Reconstruction & Development,
Bunzl, Swiftcover.com, UBS Investment Bank in the US and Logica CMG in Belgium.
Consequently the Board now believes that the Company's results for the year to
31 December 2007 will be materially ahead of their previous expectations.
Mountie Programme
FDM is continuing to recruit new Mounties and the new City of London Academy has
significantly enhanced its ability to do so. As at 30 June 2007, FDM had 190 of
its internally trained Mounties on billing, approximately in line with earlier
estimates. Mountie utilisation rates were slightly higher at 98.5%.
Most recently, FDM has been approved for funding under the Leonardo da Vinci
programme. This is a European initiative which funds students and graduates who
wish to travel to other European countries to receive training in their chosen
career. This will enable European trainees to attend FDM's academies in the
UK, thus increasing the throughput of Mounties and providing multilingual
skilled resources to European clients.
Infrastructure
FDM has now completed the first two phases of its planned investment in its
internal systems and operating infrastructure. As of 1 July 2007, the new
systems have become fully operational, which should further increase efficiency
and productivity.
Outlook
The progress we have made in the first half of the year has, as stated above,
resulted in the Company's performance being materially ahead of the Board's
expectations. FDM remains fully committed to continuing to win higher margin
business. With this in mind, the Company is conducting an internal review of
its freelance programme, in an effort to reduce exposure to lower margin,
commodity business and increase further the number of Mounties on billing.
Combined with the new package aimed at increasing the length of Mountie
employment, this should have the effect of increasing FDM's overall margins.
Given a continued strong trading environment, the Board of FDM looks forward to
a further period of strong growth by the Company.
For further information please contact:
FDM Group Plc Noble & Company Limited Pelham PR
Tel: 0870 060 3100 Tel: 0207 763 2200 Tel: 0207 743 6679
Rod Flavell Nick Naylor Archie Berens
Chief Executive Officer
Julian Divett Nick Athanas
Chief Operating Officer
This information is provided by RNS
The company news service from the London Stock Exchange
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