FDM shares drop as CEO warns of further market uncertainty
By Benjamin Chiou
Date: Wednesday 29 Jan 2025
(Sharecast News) - FDM's share price hit a record low on Wednesday after the IT consultancy pointed to further market uncertainty and lower-than-expected results in 2025 following a 23% slump in revenues last year.
In a pre-close trading update on Wednesday, chief executive Rod Flavell said it was "difficult to predict when [conditions] might demonstrate signs of a sustained improvement".
"While we continue to see encouraging levels of engagement with clients, it is unclear how soon clients' hiring budgets will be released to enable a recovery in our major end markets," he said.
FDM ended 2024 with 2,578 consultants deployed on client projects, down sharply from 3,892 at the end of 2023 and lower than previously expected.
"This, taken with current market conditions, leads the board to anticipate that the 2025 full-year financial performance may be below its previous expectations," Flavell said.
Shares were down around 7% at 250p by 0832 GMT, hitting a record intraday low of 236p in early deals. The stock has already fallen by 23% so far in 2025.
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