FDM Group (Holdings) PLC (GB:FDM)
LSE:FDM
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FDM Group (Holdings)
(LSE:FDM)
Select Model
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Rating:54Neutral
Price Target:
110.00 p
▼(-14.73% Downside)
Action:ReiteratedDate:04/21/26
The score is primarily held back by weakening financial performance (two-year revenue contraction and sharp margin/return compression). Technicals add caution with the stock below key longer-term moving averages and negative MACD. Valuation provides partial support via the very high dividend yield, offset by a P/E that is not especially cheap.
Positive Factors
Scalable training-to-deployment model
FDM’s core model—recruit, train and place consultants on time-based fees—creates a repeatable, scalable revenue engine tied to utilization. This structure supports predictable cash generation as academy throughput and utilization improve, sustaining margins over a multi-month horizon.
Negative Factors
Revenue decline and margin compression
A material revenue drop with sharp net margin compression signals weakened demand and operating leverage deterioration. If lower utilization or bill rates persist, margins and profitability may remain constrained for several quarters, limiting ability to rebuild returns and invest in growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Scalable training-to-deployment model
FDM’s core model—recruit, train and place consultants on time-based fees—creates a repeatable, scalable revenue engine tied to utilization. This structure supports predictable cash generation as academy throughput and utilization improve, sustaining margins over a multi-month horizon.
Read all positive factors
FDM Group (Holdings) (FDM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£121.10M
Dividend Yield13.93%
Average Volume (3M)518.04K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-31.03%
EPS Growth-72.36%
CountryUK
Employees3,754
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.05
Shares Outstanding109,728,775
10 Day Avg. Volume500,339
30 Day Avg. Volume518,037
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)2.81
Price to Sales (P/S)0.83
P/FCF Ratio7.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£97.23Price Target Upside-24.63% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.09
Revenue Forecast (FY)£166.28M
FDM Group (Holdings) Business Overview & Revenue Model
Company Description
FDM Group (Holdings) plc provides information technology (IT) services in the United Kingdom, North America, rest of Europe, the Middle East, Africa, and the Asia Pacific. It is involved in recruiting, training, and placing its own IT and business...
How the Company Makes Money
FDM primarily makes money by supplying trained consultants to clients on a time-based fee model. After recruiting and training candidates (often through its own academies), FDM places them on client assignments where clients pay for the consultant...
FDM Group (Holdings) Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 177.73M | 257.70M | 333.98M | 329.97M | 267.36M |
| Gross Profit | 77.48M | 114.95M | 156.53M | 155.62M | 126.72M |
| EBITDA | 18.29M | 34.72M | 62.16M | 52.69M | 48.23M |
| Net Income | 5.67M | 20.51M | 40.77M | 34.91M | 31.83M |
Balance Sheet | |||||
| Total Assets | 89.71M | 111.45M | 124.18M | 130.23M | 126.74M |
| Cash, Cash Equivalents and Short-Term Investments | 35.28M | 40.59M | 47.23M | 45.52M | 53.12M |
| Total Debt | 19.91M | 21.71M | 20.18M | 12.89M | 15.23M |
| Total Liabilities | 37.56M | 44.11M | 47.51M | 47.03M | 48.61M |
| Stockholders Equity | 52.15M | 67.34M | 76.67M | 83.20M | 78.13M |
Cash Flow | |||||
| Free Cash Flow | 20.55M | 28.90M | 49.50M | 35.21M | 41.23M |
| Operating Cash Flow | 20.73M | 29.24M | 50.15M | 36.42M | 41.60M |
| Investing Cash Flow | -188.00K | -335.00K | -651.00K | -1.20M | -368.00K |
| Financing Cash Flow | -25.12M | -36.34M | -46.95M | -43.72M | -52.26M |
FDM Group (Holdings) Technical Analysis
Neutral
129.00
Price Trends
126.33
Negative
132.33
Negative
135.37
Negative
Market Momentum
-6.45
Negative
46.03
Neutral
79.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDM, the sentiment is Neutral. The current price of 129 is above the 20-day moving average (MA) of 103.26, above the 50-day MA of 126.33, and below the 200-day MA of 135.37, indicating a neutral trend. The MACD of -6.45 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 79.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:FDM.
FDM Group (Holdings) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £2.79B | 10.91 | 45.16% | 2.05% | 68.13% | 12.44% | |
73 Outperform | £4.22B | 7.45 | 14.84% | 2.43% | 32.01% | -7.80% | |
69 Neutral | £57.48M | 15.19 | 12.27% | ― | 27.43% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £121.10M | -65.69 | 10.20% | 13.93% | -31.03% | -72.36% | |
54 Neutral | £208.71M | 18.70 | 4.57% | 3.01% | -31.46% | 297.44% | |
48 Neutral | £44.33M | -2.77 | -18.74% | ― | -5.84% | 55.30% |
* Technology Sector Average
GB:FDM
FDM Group (Holdings)
110.40
-105.25
-48.81%
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FDM Group (Holdings) Corporate Events
Business Operations and StrategyExecutive/Board Changes
FDM Group Grants New Performance Share Awards to Senior Leadership
Positive
Apr 27, 2026
FDM Group (Holdings) plc has granted performance share plan awards over ordinary shares to its executive directors and senior managers under the FDM 2014 Performance Share Plan. The awards, structured as options with a nominal exercise price, form...
Regulatory Filings and Compliance
FDM CFO’s Close Associate Purchases Additional FDM Shares
Positive
Apr 21, 2026
FDM Group (Holdings) plc has disclosed that Paula McLaren, a person closely associated with Chief Financial Officer Michael McLaren, acquired 43,105 ordinary shares in the company at £1.162 per share. The transaction, carried out on 21 April ...
Other
FDM Group Executives’ Associated Company Buys Additional Stake
Positive
Apr 20, 2026
FDM Group (Holdings) plc reported that Logiealmond Estate Limited, a company controlled by CEO Roderick Flavell and COO Sheila Flavell and deemed a person closely associated with them, has purchased 285,175 ordinary shares in the company. The shar...
Regulatory Filings and ComplianceShareholder Meetings
FDM Group Sets Date and Publishes Documents for 2026 AGM
Neutral
Apr 10, 2026
FDM Group (Holdings) plc has announced that its 2026 Annual General Meeting will be held on 21 May 2026 at its London offices, providing shareholders an opportunity to engage with the company’s leadership. The company has also published its ...
Business Operations and StrategyDividendsFinancial Disclosures
FDM Group Profits Slide but Cash Remains Strong as AI Demand Builds
Negative
Mar 18, 2026
FDM Group reported sharply lower results for 2025 as difficult market conditions and prolonged client decision cycles weighed on demand for its consultants, driving revenue down 31% to £177.7m and profit before tax down 73% to £7.6m. The...
Regulatory Filings and Compliance
FDM Group Updates Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
FDM Group (Holdings) plc has confirmed that, as of the close of business on 27 February 2026, its issued share capital consists of 109,728,777 ordinary shares of £0.01, each carrying one voting right, with no shares held in treasury. This upd...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.