FDM Group’s 2025 trading update: 31% revenue decline, but in line with expectations
FDM Group has posted a tough set of top-line numbers for 2025, but crucially they land within the range of market expectations. The Group expects revenue of £178 million for the year to 31 December 2025, down 31% year on year, or 30% on a constant currency basis. Management flags a late-year uptick in activity that has continued into early 2026, while keeping a cautious stance given subdued market conditions.
Full-year results land on 18 March 2026. For now, this is a trading update, so we get the headlines without the granular detail.
Revenue, profits and what “in line” really means
Revenue is expected at £178 million, compared with £258 million in 2024. The company says overall performance will be within market expectations. FDM provides a company-compiled range for 2025 Adjusted Profit Before Tax of £13.5 million to £14.4 million.
Quick jargon buster:
- Adjusted Profit Before Tax: underlying profit before tax, excluding certain items to give a cleaner view of trading.
- Constant currency: adjusts for exchange rate movements to show like-for-like performance.
Being “within expectations” matters. In a challenging year, missing the range can rattle confidence. Meeting it, even with a hefty revenue decline, suggests FDM managed costs and deployments closely enough to avoid a profit shock.
Consultant deployments by region show a broad-based slowdown
FDM ended 2025 with 2,003 Consultants placed with clients, down from 2,578 at the end of 2024. That is the commercial engine of the business, so the lower deployment base helps explain the revenue step-down.
Regional snapshot of year-end deployments
- UK: 910 Consultants (2024: 1,056)
- North America: 500 Consultants (2024: 742)
- APAC: 469 Consultants (2024: 524)
- EMEA: 124 Consultants (the RNS cites 2023: 256 for comparison)
North America and the UK saw the most pronounced reductions in absolute terms. APAC was more resilient, though still lower year on year. EMEA finished the smallest and was also down versus the comparator stated in the RNS.
Training pipeline: cautious rebuild as activity picks up
Training is FDM’s feedstock for future deployments. The Group delivered 828 training completions in 2025, compared with 877 in 2024. Management increased the volume of consultants in training in the UK, North America and Australia late in the year, responding to improved activity in key markets.
The tone here is sensible: a cautious increase, not a surge. That guards against excess capacity if demand weakens again, while positioning FDM to capture work if the recovery firms up.
Balance sheet: £35 million cash and no debt
FDM closed 2025 with cash of £35 million, down from £41 million a year ago. The Group has no debt. That is a solid platform in a choppy market. Cash and an ungeared balance sheet give FDM room to keep investing in training and to bridge slower client onboarding without taking on leverage.
Dividend intentions are not disclosed in this update.
Outlook for 2026: green shoots, but still a cautious backdrop
Management says the increase in activity seen in the last four months of 2025 has continued into early 2026. They also stress that economic and political backdrops remain uncertain and market conditions remain subdued. The playbook is unchanged: align resources with demand, invest prudently, and stay ready for growth as markets allow.
The CEO’s message is balanced. There are signs of client appetite returning, with some initiatives already underway, but the team is not getting ahead of itself. If deployments rebuild from here, revenue should follow. If not, the cost discipline and cash position should help protect the downside.
Investor take: where this leaves the FDM story
Negatives:
- A 31% revenue decline is significant and reflects softer demand across multiple regions.
- Year-end deployments are materially lower than last year, which can weigh on early 2026 revenue run-rate.
Positives:
- Performance is within market expectations, supported by tight resource alignment.
- Cash of £35 million and no debt provide resilience and strategic flexibility.
- Late-2025 activity uplift continuing into early 2026 hints at a possible turning point.
The near-term watchlist is straightforward: deployment growth by region, training throughput versus placements, and confirmation of the Adjusted PBT outcome within the £13.5 million to £14.4 million range. The March results should also shed light on client demand patterns and any signs of sustained recovery into Q1 2026.
Key numbers at a glance
| Metric | 2025 | Prior period |
|---|---|---|
| Revenue | £178 million | £258 million (2024) |
| Revenue change | Down 31% | Down 30% on a constant currency basis |
| Adjusted PBT – market expectations | £13.5m to £14.4m | Not disclosed |
| Consultants placed at year-end | 2,003 | 2,578 (2024) |
| UK Consultants | 910 | 1,056 (2024) |
| North America Consultants | 500 | 742 (2024) |
| APAC Consultants | 469 | 524 (2024) |
| EMEA Consultants | 124 | 256 (2023 comparator per RNS) |
| Training completions | 828 | 877 (2024) |
| Closing cash | £35 million | £41 million (2024) |
| Net debt | No debt | No debt |
Bottom line: disciplined through the downturn, eyes on a 2026 rebuild
FDM has navigated a difficult year with discipline, finishing within expectations and preserving a robust balance sheet. The decline in deployments and revenue is clear, but so is the cautious optimism about improving activity levels heading into 2026.
If client programmes continue to restart and deployments rise, FDM should be well placed to return to growth. Until then, tight resource alignment and a clean balance sheet are the right levers to pull.
