FDM Group PLC
13 December 2007
Embargoed for release at 7.00am 13 December 2007
FDM Group plc
("FDM" or the "Company")
Positive Trading Update
The Board of FDM (LSE: FDMG), the IT services business, is today providing an
update on its expectations for the year ending 31 December 2007.
Trading update
Between January 2007 and September 2007, FDM has consistently reported that its
trading has been strong. FDM is now pleased to report that this trading
performance has continued throughout the final quarter of the year. As a
consequence the Board now believes that the Company's results for the year to 31
December 2007 will be materially ahead of their previous expectations. The
Company has continued to focus on higher margin business and the Board expect
the results for the year ending 31 December 2007 to show improved gross margins.
FDM can further report that it has experienced no impact from the well
publicised problems affecting the banking and financial services sector.
Indeed, demand for FDM's services in all the sectors it focuses on continues to
be robust. Productivity has improved and FDM's conversion ratio will be ahead
of last year's figure and significantly above the industry average.
The City of London office, which was opened in early 2007 with the objective of
better servicing FDM's client base in London, is already operating at full
capacity. The Board believes that this further demonstrates that FDM is not
experiencing decreases in demand from its clients.
Mountie programme
FDM is continuing to recruit new Mounties and the City of London Academy has
significantly enhanced its ability to do so. As at 31 December 2007, FDM expects
to see continued growth in the number of internally trained Mounties on billing.
On an annualised basis Mountie utilisation rates have exceeded 98%. In November
2007, FDM opened a Manchester Academy and this is currently seeing good levels
of demand for training places from prospective Mounties. In addition the Board
expect the London Academy to be expanded during 2008.
Outlook
Looking ahead to 2008, the Board believe that the prospects for FDM are
encouraging and they view the future with confidence. The new Academies are
well placed to provide a supply of trained Mounties and there continues to be
demand for FDM's unique model of providing trained IT graduates and other
professionals to clients in a wide variety of sectors.
Rod Flavell, Chief Executive of FDM, commented:
"We are pleased with the way FDM has grown during 2007 and we remain very
positive about the outlook for 2008. We are seeing increased levels of demand
from many of our clients as they recognise the valuable service FDM provides for
them.
In 2008 we will increase the number of Mounties trained by FDM. I anticipate
that the expansion of our London Academy and the opening of an Academy in
Manchester will provide us with an excellent pipeline of well trained IT
professionals.
The Board view the future with optimism."
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
David Templeman
Chief Financial Officer
This information is provided by RNS
The company news service from the London Stock Exchange
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