2*
FDM Group, a global professional services provider with a focus on Information Technology, issued another soft update this morning. Against a background of continuing market uncertainty since the publication of Interim Results on 31 July 2024, the Board confirms that it anticipates that the Group's financial performance for the full year 2024 will be in line with its expectations. The problem is these expectations are soft and the share price is down again accordingly...from WealthOracle
wealthoracle.co.uk/detailed-result-full/FDM%20/986 |
Shore expects divi for 2024 to be 21.1p (5% yield) and 23.2p for 2025.
It says: "FDM is trading at an FY24F PER of 19.9x and offers an attractive dividend yield of 5.0%. At current levels, the Group is trading at a 20% discount to its long-term average PER, which, in our view, is excessive and driven by worries over the short-term risks relating to macroeconomic uncertainty and long-term risks posed by Artificial Intelligence. Once the macroeconomic outlook improves and concerns over the impact of AI alleviate, we believe the stock will rerate. We further believe that FY26F earnings could be materially ahead of FY24F and FY25F. Our price target is based on an FY26F EBITA figure potentially 25% ahead of our FY25 estimate (although still below previous levels) – a median peer group EV/EBITA multiple of 13.5x drives our new price target of 600p." |
Triktrak, do you know what Shore's forecast on dividend is? If maintained I think it would be uncovered, but there is cash on the b/s. Obviously a tasty yield if maintained. |
House broker, Shore Capital, released a new note this week:
FDM's "...recovery could be faster, more flexible and more profitable than investors believe. We also feel the threat from AI is overblown and could, in fact, drive additional demand. We view the current valuation as a good entry point with risks on the upside. We believe that both the Group’s rating and its earnings could move materially higher, driving our new price target of 600p(43%upside potential)." |
From AGM statement today:
"Whilst many of our clients' decisions on commencing major projects continue to be subject to delay or deferral as a result of the macro-economic and geo-political uncertainties that remain in most of our regions, we are nevertheless seeing the very early signs of improvement in certain areas."
Is the business cycle starting to turn? |
Umm, for those who want to remain in the same sector, but with an awarding winning SME consulting firm, who are rapidly organically expanding, ( not contracting ). Triad Group Plc.
Good luck to those that remain here. |
OuchHas to be todays dog of the FTSE |
Due on Wednesday 20th March. |
Are the 2023 results delayed ? Last year they were released on 15th of March 2023. |
Chasing funds up to get in here to make a start |
Prime takeout this can be who wouldn’t want that money on ther balance sheet and a good respected company |
47mill in the bank no debt amazing how the market works lol get yerself in debt and you’ll be worth a fiver more 😂 |
This company is far to large, to return super profits for me.
I do like the gross margin 46% across the board .
That said.
Growth is going the wrong way with less consultants not more. |
ST: what do you make of this 8.80 Dividend Yield?
That seems a lot for a software house.... |
 The new procurement Bill may make it harder for the big boys.,( inc FDM ) to win uk Government contracts going forward.
Large, over £20M contracts will still go directly to those that can handle them.
It will not be an overnight event.
Streamlining Bidding Processes
At a high level, the goals propose to simplifying processes, removing barriers for SMEs, and driving better value for money. One primary aim is streamlining procedures to boost SME participation in government contracts. Measures include requiring procurement entities to proactively evaluate and mitigate SME-specific challenges throughout the procurement lifecycle.
For example, the Act allows SMEs to show proof of required insurance only upon contract award rather than during bidding. This spares SMEs from carrying unnecessary costs pre-award when outcomes are uncertain.
Additionally, the Act mandates smaller, more tailored contract lots and enables direct price negotiations between procurers and suppliers. In principle, this flexibility caters better to SME capabilities versus rigid tendering processes. |
Took my first lot this looks a good hold |
I see this stock as a potential take out reads well results in line 47mill in the bank no debt not many out there like this. |
Interesting too that CEO Rod Flavell said last week: "Levels of client engagement remain encouraging and the early signs of returning client confidence which we reported in November continue." Possibly the tide is starting to turn. |
Got Fdm on my watchlist very cheap I’d say abit volatile aegon just took up 5% and nice divi to boot |
Never bet against Rod Flavel! |
‘Robust balance sheet’ Lots of cash and good divi. Fallen on hard times. I think worth a punt at this price so dipped a toe in this morning. Bid opp somewhere? |
Switched to CURY today |
Yes.i thought the same.was tempted to contact their investor relations.info will worm its way out to the minnows eventually! |
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