FDM Group (Holdings): Encouraging trends continue

Research evidence excerpt

FDM Group (Holdings): Encouraging trends continue

Equity Research

European Business Services

21 May 2026

FDM Group (Holdings)

Encouraging trends continue

Trading is in line with the company's expectations following

"encouraging signs of activity" flagged in mid-March. AI

initiatives are gaining traction, supporting engagement and FDM.L/FDM LN OVERWEIGHT

European Business Services POSITIVE

positioning the company for growth as adoption evolves. We Price Target GBP 1.70

do not expect a change to consensus. Price (19-May-26) GBP 1.07

Potential Upside/Downside +58.9%

Source: Bloomberg, Barclays Research

Trading update: The encouraging signs of activity noted at FY results in mid-March (link) have

been sustained in recent months. There was a modest up-tick in some markets (e.g., Canada,

Australia, UK) highlighted at the prelims which is still the case, and overall group performance is European Business Services

in line with the company's own expectations. As of 30 April 2026, the group had 1,961 James Rowland Clark

+44 (0)20 7773 0872consultants assigned with clients (-17% y/y), 2% lower than 2,003 as at 31-Dec-25 (-22% y/y).

james.rowlandclark@barclays.com

The group's balance sheet and cash conversion remain solid, with cash balances of £30m as of Barclays, UK

30 April 2026 vs. £42m as of 30 April 2025.

James Rose, CFA

AI-related activity: FDM's client-focused AI initiatives are gaining traction, supporting strong +44 (0)20 7773 0460

engagement and enabling them to deliver targeted solutions as the clients navigate AI adoption james.l.rose@barclays.com

Barclays, UKin their enterprises.

Vasia Kotlida

FY26 estimates unchanged: We forecast 2,195 FY26 YE consultants, revenue of £165.4m and +44 (0)20 7773 4635

adj. PBT of £13.0m (c.5% below Bloomberg consensus of £13.7m).