FDM Group Holdings
Website:
FDM Group Holdings
Index:
FTSE Small Cap
EPIC: FDM
Supersector:
Technology
Sector:
Software and Computer Services
Subsector:
Computer Services
Market Cap:
£115.7M
Payout Frequency: Semi-Annual
FDM Group Holdings Dividend Analysis and Summary
Key Dividend Details
- Final dividend declared: 4.0 pence per share (subject to AGM approval on 21/05/2026).
- Total FY2025 dividend: 10.0 pence per share (FY2024: 22.5p; down 56%).
- Interim dividend already paid: 6.0 pence per share on 14/11/2025.
- Record date: 05/06/2026; derived ex-dividend date: 04/06/2026.
- Payment date: 26/06/2026.
- Estimated cash cost of final dividend: ~£4.34m (based on 109.73m shares).
- Balance sheet support: year-end cash £35.3m; no debt; distributable reserves £23.3m.
Dividend Sustainability and Cover
- Earnings cover (statutory): FY2025 basic EPS 5.2p vs DPS 10.0p ? cover ~0.5x (not covered by statutory earnings).
- Earnings cover (adjusted): adjusted basic EPS 10.0p vs DPS 10.0p ? cover ~1.0x (at the floor of comfort).
- Cash flow: Operating cash flow £20.8m covered total dividends paid in 2025 (£20.3m), but cash conversion was flattered by working capital and non-cash impairment add-backs.
- Profitability pressure: Revenue down 31%; adjusted operating profit down 59%; PBT down 73%. This constrains headroom for dividend growth.
- Reserves capacity: At a 10p annual DPS (~£11.0m cash outlay), distributable reserves of £23.3m provide a limited multi-year buffer if profits do not recover.
Growth Trajectory and Policy
- The dividend was reset (down 56% YoY) to align with weaker trading while maintaining policy discipline around “appropriate cover.”
- Outlook signals modest uptake in activity, with emphasis on AI-enabled offerings and a sales transformation programme; however, management remains cautious given macro/geopolitical uncertainty.
- Given current earnings and margin profile, near-term dividend growth appears unlikely until a clearer recovery in demand and profitability emerges.
Capital Allocation and Balance Sheet Support
- No debt and £35.3m cash underpin the proposed final dividend.
- Minimal capex (£0.2m) and a flexible cost base support cash preservation; however, dividends in 2025 effectively consumed most operating cash flow.
- No buybacks; focus remains on cost control and targeted investment in AI capability and sales enablement.
Structural Changes and Notable Items
- No demergers, M&A, or share consolidations disclosed.
- Leadership changes: new Non-Executive Chair (from July 2025) and a US-based NED; closure of the BAYE plan in 2025 (reduces share-based payment noise going forward).
- EMEA goodwill and asset impairment of £3.3m following regional losses; indicates structural profitability challenges in that segment.
Risks and Flags to Dividend Stability
- High payout relative to earnings (statutory cover ~0.5x; adjusted cover 1.0x) leaves little margin for downside.
- Material profit contraction and lower consultant headcount (-22%) reduce forward cash generation visibility.
- Regional weaknesses (EMEA loss, NA client-related disruption) and geopolitical uncertainty could prolong recovery.
- Cash conversion boosted by working capital and non-cash items; may not be repeatable at current levels.
- Final dividend remains subject to shareholder approval at the 2026 AGM.
Read more
FDM Group Holdings Annual Dividend Yield - 17.49%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 05/06/2025 |
27/06/2025 |
Final |
12.50p |
GBX |
| 23/10/2025 |
14/11/2025 |
Interim |
6.00p |
GBX |
Total (Annual Dividends Per Share):
18.50p
Dividend Yield =
Annual Dividends Per Share (18.50p)
÷ Share Price (105.8p)
= 17.49%
FDM Group Holdings Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/06/2026 |
26/06/2026 |
Final |
4.0000p |
GBX |
| 23/10/2025 |
14/11/2025 |
Interim |
6.00p |
GBX |
| 05/06/2025 |
27/06/2025 |
Final |
12.50p |
GBX |
| 10/10/2024 |
01/11/2024 |
Interim |
10.00p |
GBX |
| 06/06/2024 |
28/06/2024 |
Final |
19.00p |
GBX |
| 21/09/2023 |
13/10/2023 |
Interim |
17.00p |
GBX |
| 08/06/2023 |
30/06/2023 |
Final |
19.00p |
GBX |
| 25/08/2022 |
30/09/2022 |
Interim |
17.00p |
GBX |
| 19/05/2022 |
10/06/2022 |
Final |
18.00p |
GBX |
| 05/08/2021 |
03/09/2021 |
Interim |
15.00p |
GBX |
| 13/05/2021 |
04/06/2021 |
Final |
15.00p |
GBX |
| 04/02/2021 |
26/02/2021 |
2nd Interim |
13.00p |
GBX |
| 06/08/2020 |
04/09/2020 |
Interim |
18.50p |
GBX |
| 21/05/2020 |
12/06/2020 |
Final |
18.50p |
GBX |
| 22/08/2019 |
20/09/2019 |
Interim |
16.00p |
GBX |
| 23/05/2019 |
14/06/2019 |
Final |
15.50p |
GBX |
| 23/08/2018 |
21/09/2018 |
Interim |
14.50p |
GBX |
| 24/05/2018 |
15/06/2018 |
Final |
14.00p |
GBX |
| 24/08/2017 |
22/09/2017 |
Interim |
12.00p |
GBX |
| 25/05/2017 |
16/06/2017 |
Final |
10.30p |
GBX |
| 25/08/2016 |
23/09/2016 |
Interim |
9.30p |
GBX |
| 12/05/2016 |
03/06/2016 |
Special |
5.00p |
GBX |
| 12/05/2016 |
03/06/2016 |
Final |
8.50p |
GBX |
| 20/08/2015 |
25/09/2015 |
Interim |
8.00p |
GBX |
| 14/05/2015 |
12/06/2015 |
Interim |
7.50p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
10.000 |
19.000 |
|
GBX |
29.000 |
-19.440 |
| 2023 |
17.000 |
19.000 |
|
GBX |
36.000 |
2.850 |
| 2022 |
17.000 |
18.000 |
|
GBX |
35.000 |
-18.600 |
| 2021 |
15.000 |
15.000 |
|
GBX |
43.000 |
16.210 |
| 2020 |
18.500 |
18.500 |
|
GBX |
37.000 |
17.460 |
| 2019 |
16.000 |
15.500 |
|
GBX |
31.500 |
10.520 |
| 2018 |
14.500 |
14.000 |
|
GBX |
28.500 |
27.800 |
| 2017 |
12.000 |
10.300 |
|
GBX |
22.300 |
-2.190 |
| 2016 |
9.300 |
8.500 |
5.000 |
GBX |
22.800 |
47.090 |
| 2015 |
15.500 |
|
|
GBX |
15.500 |
|
FDM Group Holdings Dividend Calculator
FDM Group Holdings Dividend Growth
| Dividend Growth (1Y) |
-55.56%
|
| Dividend CAGR (5Y) |
-18.61%
|
| Years of Growth |
–
|
| Payout Ratio |
357.61%
|
| Buyback Yield |
0%
|
| Shareholder Yield |
9.47%
|
| P/E Ratio (TTM) | 20.4 |
|---|
| Forward P/E | 11.53 |
|---|
| P/FCF | 5.61 |
|---|
| Earnings Yield | 4.89% |
|---|
| FCF Yield | 17.81% |
|---|
| ROE | 9.49% |
|---|
| ROCE | 19.76% |
|---|
| Profit Margin | 3.19% |
|---|
| Operating Margin | 7.53% |
|---|
| Gross Margin | 43.59% |
|---|