Shares digital

FDM (FDMG:AIM) – Finals PTP: £4.25m (£2.78m) Divi: 2.7p (1.9p)

Even though the financial services sector generates roughly 40% of the IT service’s firms revenues, FDM has yet to see any slowdown in demand, and its unique Mounties model continues to generate excellent profits and cashflow.

The £25 million cap continues to shift its business mix away from lower-margin freelance consultants, to its own contractors who are recruited and trained inhouse and are known as Mounties.

FDM, which provides systems integration took the number of Mounties from 154 to 208 and capacity utilisation remained around 98%. The opening of a training academy in Manchester, to supplement those in Brighton and London, underpins management optimism for 2008.

The shares of FDM held firm at 109p, well below their 155p 12-month high.

Shares says: A prospective PE of around eight suggests the market still fears earnings forecasts are too optimistic.

by: Russ Mould