FDM

Fdm Group (Holdings) PLC

Technology First-pass screen £115m

420/1000 Overall fit

AI beneficiary 35% 38

Operating leverage 25% 48

Valuation 25% 32

Downside protection 15% 57

First-pass take

FDM is an IT recruitment and consulting services business where AI is listed as one of many service offerings with no dedicated revenue line or strategic emphasis. Adjusted operating margins improved 170bp to 17.7% through cost discipline and utilization gains (97.3%), but revenue was flat and leverage is headcount-based rather than software-driven. Strong FCF (124% cash conversion) and net cash (£53.1m, no debt) provide balance-sheet resilience, yet the cyclical consulting model lacks defensiveness.

Flags

limited-ai-exposureflat-revenue-growthservices-not-softwareno-valuation-datacyclicalhigh-dividend-payoutcustomer-concentration