Trading Update

RNS Number : 9009V

FDM Group PLC

20 July 2009

 



For immediate release

20 July 2009

FDM Group Plc

Trading Update

FDM (AIM : FDMG), the international IT services business, today provides an update on its trading for the six month period to 30 June 2009.

The Company is pleased to report that its profit performance for the first six months is in line with directors' expectations despite difficult economic conditions. However, the Company has experienced pressures on freelance contractor rates and the buying patterns of our institutional client base have exhibited two distinct trends associated with the economic uncertainty: 

• buying decisions are taking longer than we would normally expect; and 

• once buying decisions have been made, contract durations associated with placements of our in-house "Mountie" resources and freelance contractors have shortened in comparison with the position at 31 December 2008.

These changes in buying behaviour mean that visibility has reduced and predictability has become more difficult throughout our client portfolio and across our international businesses. At 30 June 2009 we had 302 Mounties and 326 freelance contractors compared with 293 and 332 at 31 December 2008 respectively, which is lower than the directors' had originally anticipated for the end of the half year.

We continue to carefully manage our overhead expense base and monitor our cash collections through well-organised interaction with our customers. However, we have seen a modest increase in debtor days since the financial year-end reflecting more stringent working capital management by our clients.

Despite the current poor economic conditions we continue to invest for the future and have completed the transition of our London training operations into modern office space at 55 King William Street in January 2009. These training facilities will serve us well once market conditions improve.

Update on the possible offer

On 4 June 2009 the Company announced that it was in discussions with its management in respect of a possible offer for the Company. The Company has continued its discussions with the management team regarding the potential offer. Further announcements will be made in due course.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code (the 'Code'), if any person is, or becomes, 'interested' (directly or indirectly) in 1% or more of any class of 'relevant securities' of the Company, all 'dealings' in any 'relevant securities' of the Company (including by means of an option in respect of, or a derivative referenced to, any such 'relevant securities') must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the 'offer period' otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an 'interest' in 'relevant securities' of the Company, they will be deemed to be a single person for the purpose of Rule 8.3.Under the provisions of Rule 8.1 of the Code, all 'dealings' in 'relevant securities' of the Company by the offeror or the Company, or by any of their respective 'associates', must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose 'relevant securities' 'dealings' should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 'Interests in securities' arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a 'dealing' under Rule 8, you should consult the Panel.

Responsibility

The Directors of the Company accept responsibility for the information contained in this statement. To the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information contained in this statement is in accordance with the facts and does not omit anything likely to affect the import of such information.

Brewin Dolphin Ltd ("Brewin Dolphin"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, are acting exclusively for FDM Group PLC and no one else in connection with the matters set out in this announcement and are not advising any other person and accordingly will not be responsible to any person other than FDM Group PLC for providing the protections afforded to clients of Brewin Dolphin or for providing advice in relation to the matters described in this announcement.

Enquiries:

FDM Group Rod Flavell, Chief Executive Officer David Templeman, Group Finance Director	Tel No: + 44 (0) 870 060 3100
Brewin Dolphin Investment Banking Matt Davis / Neil McDonald	Tel No: + 44 (0) 845 213 3219
Buchanan Communications  Lisa Baderoon / Jeremy Garcia	Tel No: + 44 (0) 207 466 5000

 

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