FDM full-year results seen in line after 'solid' second half

IT recruitment and training company FDM said on Wednesday that its full-year results are set to be in line with its expectations, as it declared a second interim dividend after a "solid" second-half performance.

In an update for the year to 31 December 2020, the company declared a second interim dividend for the year of 13p per share, payable on 26 February, "given the group’s continued solid performance, strong cash position and encouraging prospects".

In March, FDM’s board decided against paying a dividend due to the Covid-19 pandemic. However, it declared an interim dividend of 18.5p a share in July following an "encouraging" performance. FMD said that going forward, it will return to its normal dividend policy.

The company said full-year revenue is expected to be £268m, down from £272m in 2019, while adjusted pre-tax profit is set to come in at £42m compared to £54.5m the year before.

FDM said its balance sheet remains "very strong", with closing cash balances of £65m, up from £37m a year ago and no debt.

The company ended the year with 3,580 mounties placed with clients, compared to 3,924 in 2019.

Chief executive officer Rod Flavell said: "FDM has delivered a solid performance for 2020. Although we are alert to the possible impact on client activity of further lockdowns, our agile and robust business model has allowed us to respond rapidly and effectively to the exceptional challenges the Covid-19 pandemic has brought.

"The current year has started promisingly with encouraging levels of demand across most sectors and geographies."