Fdm Group (holdings) Plc · LSE:FDM
Fdm Group (holdings) — FY2008 Earnings Presentation
21 slides from Fdm Group (holdings)'s earnings presentation, March 2009
Slide 1: Final Results FDM Group Presentation
Final Results FDM Group Presentation Year ended 31 December 2008 Rod Flavell – CEO David Templeman – CFO March 2009
Slide 2: About us
About us: An international IT Services company specialising in consulting and training One of the largest UK independent IT specialists with overseas offices in Frankfurt, Luxembourg, Zurich and New York Mountie brand is recognised and growing – delivering record levels of demand All Mountie consult
Slide 3: Operating highlights
Operating highlights Gross profit up 22.1% on 2007 to £13.7m, margins up to 26.2% (2007: 22.5%) Profit before tax up 20.2% on 2007 to £5.3m Final dividend of 2.5p making a total of 3.5p (2007: 2.7p) Mountie utilisation rates sustained at 97.7% (2007 : 98.3%) Strong cash position at £10.1m (2007: £5.
Slide 4: KPIs
KPIs REVENUES GROSS PROFIT PROFIT BEFORE TAX MOUNTIE UTILISATION RATES £m £m £m 2007 2008 2007 2008 2007 2008 2007 2008 GROSS MARGIN OPERATING MARGIN NUMBER OF MOUNTIES % % 2007 2008 2007 2008 2007 2008
Slide 5: Organising our business for growth
Organising our business for growth • From 2009 we are organising our business to follow the functional areas in which we operate (Application Support, Testing, Training, Consultancy and Infrastructure) • This form of organisation will align all Mountie and freelance activity within these vertical bu
Slide 6: Global Services: A Blended Solution
Global Services: A Blended Solution Mountie Consultants Freelance offering 4 externally accredited training programmes lasting Fast track to develop client relationships - speed to between 2-6 months market Meeting industry’s demand for Java, .Net, Testing and Enables FDM to flexibly scale projects
Slide 7: Business Model
Business Model 97.7% Mountie Utilisation Rates 22.1% % increase of Total Gross Profit 7
Slide 8: Capitalising on the opportunity
Capitalising on the opportunity Able to attract high percentage of IT graduates as recognised leader in sector Circa. 2.5% of current overall numerical science students graduating in UK also certified through FDM Academy – target of 10% in next 5 years Mounties are selected after a rigorous applicat
Slide 9: Maintaining strong organic growth
Maintaining strong organic growth Mountie model continues to drive growth London and Manchester now fully operational 293 currently deployed Strong pipeline of Mountie applicants ? 135 applicant interviews per week FDM creating a “UK hub” for IT graduates Further development of accredited global ser
Slide 10: Our unique offering - filling a "niche"
Our unique offering - filling a “niche” Sector Trends • Hardest hit from Systems Integration credit crunch and Consultancy • Global budgets £1,000 per day slashed • Focus on cost Our proposition and efficiency High quality, onshore consultancy • Flexibility and service at offshore prices resource al
Slide 11: Market challenges?
Market challenges? Turbulent Conditions Our “Sweetspot” Corporate Cost Cutting A bundled global service model (Mountie & IT budget cuts Freelance) offers a lower cost alternative to “bulge bracket” consultancy Acute IT skills shortage in the UK Mountie Academy recognised as a centre of 141,000 new I
Slide 12: Case study: Tier 1 Bank
Case study: Tier 1 Bank FDM selected by the IB as 1 of only 2 vendors to supply near-shore sourcing solutions globally Currently have 90 consultants across the IB (30 are Mounties) By the year end we expect 150-175 consultants on-site, generating revenues of approx. $17m IT Services to be provided i
Slide 13: Financial highlights: profit & loss summary
Financial highlights: profit & loss summary 2008 2007 £m £m Revenue 52.21 49.83 4.8% growth Cost of Sales (38.50) (38.60) Gross Profit 13.71 11.23 22.1% growth Overheads (8.69) (7.18) 21.0% growth New Academies Other costs Non-trading items 0.25 0.20 Profit before tax 5.27 4.25 24.0% growth Corp tax
Slide 14: Financial highlights: balance sheet
Financial highlights: balance sheet 2008 2007 £m £m Non-current assets 0.55 0.70 Trade / other receivables 9.39 9.53 Cash / cash equivalents 10.06 5.95 20.00 16.18 Equity 14.08 10.50 Trade / other payables 5.92 5.68 20.00 16.18 14
Slide 15: Financial highlights: cashflow
Financial highlights: cashflow 2008 2007 FY £m £m Profit for the period 3.69 2.83 (Inc) / dec in receivables 0.74 0.67 Increase in payables (0.18) 0.69 Other items 0.08 0.50 Net cash from operating 4.33 4.69 activities Cash / cash equivalents 10.06 5.95 15
Slide 16: Financial highlights: geographic analysis
Financial highlights: geographic analysis 2008 2007 £m £m Gross Profit UK 11.28 82% 9.65 86% Europe 1.75 13% 1.16 10% America 0.68 5% 0.42 4% 13.71 100% 11.23 100% Profit before tax UK 4.31 82% 3.80 89% Europe 0.63 12% 0.32 8% America 0.33 6% 0.14 3% 5.27 100% 4.26 100% 16
Slide 17: Clients: a diverse portfolio of blue-chip businesses
Clients: a diverse portfolio of blue-chip businesses Finance and Insurance Sector 2008 2007 Breakdown Fund, Asset and Wealth mgnt. 8% 13% Investment Banking 35% 27% Retail and Corporate Banking 2% 2% Insurance 6% 4% 17
Slide 18: New client wins
LSSS——_—_..Y...___ _p! New client wins *<RBS SIM, SME DAE SYSTEMS, CREDIT Sum EADS BAE SYSTEMS SSWswiftcovercom NSPCC © ASDA realisy 18
Slide 19: Summary
Summary FDM’s global service offering continues to gain market share Mountie utilisation rates of 97.7% Encouraging business momentum with new and existing clients Academy expansion programme has added capability and flexibility to FDM’s business Recent contract momentum reinforced FDM’s resilience
Slide 20: Outlook
Outlook International proposition gaining momentum for longer term growth Demand for Global Services far out-strips our current supply capabilities Continued organic growth enhanced by investment in training centres Recessionary resilient business model continues to gain market traction The Board re
Slide 21: FDM Group Presentation
Global presence. Client focus. FDM Group Presentation