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Early Mountie growth an encouraging start for FDM
FDM (FDM) 973p
Gain to date: 5.3%
Original entry point: Buy at 924p, 4 April 2019
Just a few weeks on since our original FDM (FDM) investment idea pitch and there are already promising signs for the months ahead.
As we explained in detail earlier this month, the IT projects business is pulling back from employing expensive margin-sapping day contractors to concentrate on its Mountie army profit engine.
Mounties is a term the company uses to describe members of its team of IT consultants which are trained and deployed in clients’ businesses.
The company told investors at its AGM that Mountie revenues were up 16% in the first quarter to 31 March, outstripping the 14% overall revenue rise.
It has also managed to install an extra 500-plus Mounties into client sites versus the first three months of 2018, working on all sorts of digital development, IT testing, project management and more. Demand clearly remains strong for the right IT skills to help organisations adapt to the digital world.
There are precious few figures to go on beyond those above but the wider rhetoric remains cautiously optimistic for the rest of 2019, the company saying it is confident of delivering ‘long-term, sustainable growth.’
SHARES SAYS: An encouraging start from a high-quality business.