FDM Group slashes dividend as profit dives; notes 'encouraging signs'
FDM Group Holdings PLC on Wednesday announced that it is seeing increasing client appetite for artificial intelligence-enabled skills, as it noted that recent events in the Middle East added to economic uncertainty.
The London-based IT-focused professional services provider said pretax profit slumped 73% to £7.6 million in 2025 from £28.1 million in 2024. Adjusted pretax profit was down 60% to £13.7 million from £34.0 million.
Revenue fell 31% to £177.7 million from £257.7 million.
The company’s number of consultants assigned to clients fell 22% to 2,003 at the end of 2025 from 2,578 in 2024. In the UK, it was down 14% to 910 from 1,056, while it North America, it dove 33% to 500 from 742.
FDM said it ‘saw improved signs of appetite for investment from an appreciable number of clients across some key geographies in the latter part of the year, but geopolitical and economic uncertainty remains.’
The company proposed a final dividend of 4.0 pence per share, down 68% from 12.5p a year ago. That brings the total payout for 2025 to 10p, slashed 56% from 22.5p.
Looking ahead, FDM said: ‘We continue to see encouraging signs in some of the markets we serve, albeit levels of confidence and activity vary across our geographies. Recent events in the Middle East clearly add to the levels of economic, political and market uncertainty, but the board is optimistic that areas of the group less impacted will continue to experience the modest uptick in activity seen over recent months.
‘We are seeing increasing client appetite for artificial intelligence-enabled skills, from automation and data readiness to governance and model oversight. Our scalable coaching model, with AI literacy embedded across our practices, early career talent pipeline and existing track record in AI-enabled projects mean we are well positioned to respond to these opportunities as they develop.’
It added that it remains focused on positioning to return to sustainable growth ‘as soon as market conditions permit.’
FDM shares fell 6.7% to 114.60 pence each on Wednesday morning in London.
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