FDM (FDM) 987p

Loss to date: 16.9%

Original entry point: Buy at £11.88, 20 January 2022

IT contracting services outfit FDM (FDM) may have been a disappointing performer in share price terms since we flagged its appeal in January but the company is doing well from an operational perspective.

As a reminder FDM operates a ‘Mounties’ model, training up IT consultants or Mounties in return for their services which it then contracts out to clients in industries like finance and insurance.

A trading update to accompany the company’s AGM on 24 May revealed ‘record levels of activity’ with 4,429 consultants assigned to clients compared with a smidge over 4,000 at the start of the year.

The company is responding to high levels of demand by recruiting more consultants and internal staff.

Shore Capital analyst Gareth Evans commented: ‘Most pleasing to us is the North American performance, where both Canada and the US have delivered well – this has been a key area of concern for investors given recent disappointment, and it is a major positive to see a strong recovery.’

SHARES SAYS: We think FDM is extremely well placed in the current environment and would take advantage of any weakness to purchase more shares. 

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