Fdm Share Discussion Threads

[paulcaine2003a] 18/9/2007 14:35

Appears that no-one at all is interested in this.....4106 shares traded so far today!

[diogenesj] 18/9/2007 12:49

Very strong buy note from Daniel Stewart today (and answers your question about forecasts, Greek). Significant points:

Strong results - highest conviction recruitment BUY

* FDM report very strong H1 results this morning. We upgraded our forecasts by 15-18% at the AGM statement on 10 May and will leave our forecasts unchanged today but see scope to beat our FY07 numbers materially. Key features of the results were strongly improving margins and stellar cashflow. We believe that the Mountie model delivers strong competitive advantage and is starting to deliver on its potential. There is strong and significant unsatisfied demand for the unique Mountie offering and therefore we expect FDM to be resilient to any wider downturn in the recruitment market.

# Hence if half year EPS growth is maintained into 2H we could see a further 13% upgrade. Given that the City Academy ramped up Mountie throughput during 1H and will be at full capacity in 2H, we see scope to sustain or even beat 1H growth.

We forecast 11.6p DS&Co 2007E EPS, 14.0p for 2008E. The shares are on just 9.1x 2008E PE - inexpensive for a stock of this quality.

Full note here:

[greek islander] 18/9/2007 11:21

Also, their must be some acquisition bargains out there at the moment though I would like to see any activity of this sort kept to an outlay of no more than £1m as I think cashe reserves are worth hanging on to at the moment.

[paulcaine2003a] 18/9/2007 10:04

It just amazes me that there is so little interest in this at the moment. They have 5m in the bank and yet the company are only worth 29 million.

Think there must be some big orders already placed as they are confident of achieving their renewd forecasts.

Very undervalued IMHO

[greek islander] 18/9/2007 09:39

Yes paulcaine

I thought this bit of the results statement was very apt

* Strong improvement in cash collection: cash generated from operations
during the period was #4.14 million (2006: cash outflow of #nil)"

In the current climate that is very reassuring and the rise in eps was just as impressive. Would love to hear broker forecasts for 2007-8. The historic PE must be down dramatically and the PE 2007 would make great reading.
This was a snip before results - so what is it now?

[paulcaine2003a] 18/9/2007 08:47

G I,

Fantastic results.

Increase of 45% in PBT and good to see cash in bank at 5.16 million.

P

[greek islander] 18/9/2007 08:43

EXCELLENT SET OF RESULTS.
Even in todays financial climate the market found these irresistable. Rightly so. Any other time we would have seen a 5-10% rise.

Fdm Interim Results


RNS Number:9924D
FDM Group PLC
18 September 2007


18 September 2007

FDM Group plc
("FDM", "the Company" or the "Group")

INTERIM RESULTS FOR 6 MONTHS ENDED 30 JUNE 2007


The Board of FDM Group plc, (LSE: FDMG), the IT staffing and services business,
today announces its interim results for the 6 months ended 30 June 2007.

Financial highlights

* Revenue increased by 15.7% to #24.44 million (2006: #21.12 million)

* Gross profit (net fee income) increased by 29.0% to #5.11 million (2006:
#3.96 million)

* Profit before tax of #1.83m (2006: #1.26m), an increase of 45.2%

* Fully diluted earnings per share of 5.2p (2006: 3.8p)

* Interim dividend of 0.8 pence per share (2006: 0.6p), an increase of 33%

* Strong improvement in cash collection: cash generated from operations
during the period was #4.14 million (2006: cash outflow of #nil)

* Net cash position of #5.16 million at 30 June 2007 (30 June 2006: #1.46
million)

Operating highlights

* Overall gross margins increased to 20.9% (2006: 18.7%) and remain well
ahead of industry average

* Operating margin continued to increase to 7.1% in H1 2007 from 5.7% in H1
2006

* Internally trained, higher margin employed consultants (known as Mounties)
numbered 190 at 30 June 2007 (31 December 2006: 154); Mountie utilisation
slightly higher at 98.5%

* Contractor headcount increased from 625 at start of year to 653 at 30 June
2007

* City of London training academy has significantly enhanced FDM's ability to
recruit and train new Mounties

* New clients won during the year include Bunzl, Virgin Money, EasyNet and
Barclays Global Investors

* Current trading conditions continue to be very favourable, with little
impact experienced from volatility in the financial markets. The Board
remains confident of the outcome for the current year

* Following the period end the Company announced the appointment of David
Templeman as Chief Financial Officer



Rod Flavell, FDM's Chief Executive, commented:

"FDM continues to perform impressively. Market conditions, both commercially and
as a result of recent legislation, have shifted further in favour of FDM's
business model. Even after recently revising upwards our expectations for the
current year, we remain confident of achieving our targets."

[paulcaine2003a] 15/9/2007 12:12

Maybe I should get some real friends :)

Role on tuesday

[paddyfool] 15/9/2007 12:08

Only good news to come!

[paddyfool] 15/9/2007 11:56

Only good ews to come!

[diogenesj] 15/9/2007 10:10

It's usually more of an investment board than a social event, pc. :-)

[paulcaine2003a] 14/9/2007 15:22

its getting lonely on this board.....is anyone there?

[paulcaine2003a] 14/9/2007 09:29

clearly not......never mind, results are out on tuesday, only 2 trading days left including today. Even if the half year results show pbt of 1.7-1.9 million (which I think will be higher than that), then this company is quite clearly undervaued, especially with no debt and 2m cash in the bank.

Just a shame that the mm's have given such a wide split!

[paulcaine2003a] 13/9/2007 12:44

15k purchase at 1.30.

Could we be seeing a bit of interest in this before the results on tuesday? Bout time the share price moved.

[paulcaine2003a] 12/9/2007 13:11

welcome aboard HY.

[henryatkin] 12/9/2007 11:29

Just bought a few. Would liked to have gone in much bigger but not with 7% spread, its a killer.

[paulcaine2003a] 11/9/2007 13:05

Since the 16th of August there have been:

120,781 buys
17,214 sells

[paulcaine2003a] 10/9/2007 13:39

well just got into this one today. Heartbreaking to pay so much with the current spread although hopefully will close soon and well see some upward movement

[diogenesj] 07/9/2007 22:36

Not much chance in the current markets, PC (if you mean the spread).

[paulcaine2003a] 07/9/2007 15:41

any chance of this split coming down a little?

[paulcaine2003a] 07/9/2007 11:08

how come the spread is so large? is it because they are expecting momevement on the day of results?

[greek islander] 03/9/2007 13:03

Yes D

He is doing well enough now overall with GNG and RCG having proved very profitable (the latter he sold a couple of days ago at a nice profit - against my flawed advice: he will buy back in under 90p just to show me how clever he is) though FDMG remains his big loser - on paper anyway.
I am trying to persuade him to invest for the longer term and not keep rushing in and taking profit. He bought back into strength with more GNG and it has paid off with a premium gain over the last few days.
Just would like to see FDMG wake up a bit!
Maybe pre-results? Or we could really do with an announcement.

[diogenesj] 31/7/2007 11:11

I think he'll thank you in the end, Greek, but he does need to be aware of the risks and the need to diffuse them by spreading his investments over a number of different holdings.

[greek islander] 31/7/2007 00:41

Yes Diogenese

It's a long time since I faced such a dreadfully wide spread on a stock.
It means that for the last few days, if you buy, you are faced with a huge leeway to make up before you cover the trading costs. I felt so sorry for my mate as this is his first foray into the market and I helped him with half a dozen recommendations.
After he bought 4,575 FDMG at 152p he was faced with an immediate £400 paper drop in the value on his £7,000 purchase. That's almost 6%.
Last week the spread was not nearly so bad.

Enough to put anyone off AIM low caps.