FDM Group

FDM Group is a leading provider of outsourced IT consultancy services to larger blue chip customers in the UK, US and Europe . Since Brewin Dolphin’s appointment in July 2008 the research & sales team have worked closely with FDM and its financial PR to position the company as an IT services stock, having previously been largely promoted as a recruitment company owing to its legacy freelance business. This approach has helped to introduce the company to new investors with a special interest in IT and has helped the shares to re-rate.

In recent years the company has moved steadily into IT service outsourcing and now the supply of its own consultants trained at its own academies represents the significant majority of Group earnings. Prior to its appointment Brewin Dolphin identified that the classification as a recruiter with a leaning towards financial services identified FDM as a highly cyclical business, although this was not supported by in depth analysis or the company’s track record. Following Brewin Dolphin’s appointment a process was begun to educate investors and position the Company as an IT services business. This involved defining a clear and consistent investment proposition, the production of regular written research, in-depth guidance on investor presentations and exposure to institutional investors with a specific interest and knowledge of the IT sector.

Broadening the understanding of the business amongst blue chip institutional investors helped to generate the demand that was necessary to reinvigorate the share register and deliver positive share price momentum. From the time of Brewin Dolphin’s involvement with the company this process has led to a steady and sustained improvement in the company’s rating.