FDM Group PLC
13 January 2006
13 JANUARY 2006
FDM GROUP PLC
("FDM" or the "Group")
TRADING UPDATE
The Board of FDM Group Plc, (LSE: FDMG), the IT services provider, is today
providing an update to its shareholders prior to entering its close period ahead
of the announcement of its preliminary results for the year ended 31 December
2005.
The Company is pleased to report that the business has made solid progress
during the year delivering revenue and profits growth. As indicated in the
Group's interim results announcement, released on 8 September 2005, the Group
has been focused on undertaking higher margin business. The Company is therefore
pleased to report that the Group's gross margin not only remains well above the
industry average but has increased against the year ended 31 December 2004 and
the Board expects to report an outcome for the year ending 31 December 2005 in
line with expectations. The Group's overseas operations have traded in line with
the Board's expectations during the year.
The strength of the business and its market position has enabled the Group to
win important new clients in the year including HSBC, ABN AMRO, Direct Line and
Deloitte & Touche. In addition, the Group, using its Mountie model, has
developed a new range of services specifically tailored for the banking industry
enabling the more rapid placement of FDM employed consultants or "mounties"
within this sector.
As at 31 December 2005 the Group had 462 contractors on billing (against 426 as
at 31 December 2004) and 121 Mounties employed (against 101 as at 31 December
2004).
The demand for the Group's key area of expertise, namely JAVA and .NET
programming, remains strong both in the UK and overseas. The Board will continue
its strategy of focusing on delivering higher margin IT services and are
optimistic about the Company's prospects for the current year.
FDM Group will announce its preliminary results for the year ended 31 December
2005 on 4 April 2006.
ENQUIRIES:
FDM Group Plc Noble & Company Limited ICIS
Tel: 0870 060 3100 Tel: 0207 763 2200 Tel: 0207 651 8688
Rod Flavell, Nick Naylor Tom Moriarty
Chief Executive Officer Nick Athanas Caroline Evans-Jones
Julian Divett,
Chief Operating Officer
Notes to Editors
FDM Group Plc (LSE: FDMG) is an international IT services provider with three
business units: IT Staffing; IT Professional Services; and IT Training. The
Group provides IT services across five business sectors; financial services;
systems integrators and software houses; telecommunications and broadband;
media; and the public sector, with approximately 130 clients. As well as
supplying freelance IT contractors to its clients, the Group trains, certifies
and places its own employed consultants (knows as "Mounties") with clients. This
differentiates the Group from the majority of its competitors in the IT staffing
market who rely on a shared database of IT freelance contractors. The Mounties
generate higher gross profit margins for the Group than freelance IT
contractors, thus allowing the Group to generate gross margins higher than the
industry average. The Group specialises in JAVA and .NET programming skills, one
of the standard technologies behind the Internet. The total worldwide JAVA
market is currently estimated to be $100 billion sales a year, with an
additional $110 billion in related IT spending. FDM floated on AIM on 7th April
2005. For further information, please visit the Company website at:
www.fdmgroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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