TIDMNBB

RNS Number : 9178R

Norman Broadbent PLC

11 July 2022

Norman Broadbent plc

("Norman Broadbent", the "Company" or the "Group")

Trading Update

Norman Broadbent (AIM: NBB), a leading London quoted Executive Search and Interim Management firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services, is pleased to provide the following trading update for the 6 months ended 30 June 2022 ("H1 2022").

Financial highlights

 
 Net Fee Income         H1 2022     H1 2021    % Change 
                         GBP'000     GBP'000 
                      ----------  ----------  --------- 
 Executive Search          2,581       1,995        29% 
                      ----------  ----------  --------- 
 Interim Management          715         752          - 
                      ----------  ----------  --------- 
                       ---------   --------- 
                      ----------  ----------  --------- 
 Group Total               3,296       2,747        20% 
                      ----------  ----------  ---------

-- Following on from a strong Q4 2021, net fee income ("NFI") in H1 2022 increased by 20% to GBP3.3m (H1 2021: GBP2.7m) driven by growth in Executive Search NFI.

-- Executive Search NFI grown by 29% to GBP2.6m (H1 2021: GBP2.0m) through culture change, increased focus on senior mandates and improved brand positioning across core sectors.

-- Interim Management NFI slightly down year on year ("YOY") at GBP0.7m, however, an operational focus to grow the Company's book of long-term contractors versus purely fixed term contracts has seen a considerable increase in contractor numbers and recurring income from these long term contractors, providing additional H2 2022 NFI visibility of GBP0.2m.

   --    Average new search fee value increased by 30% YOY. 
   --    Average NFI per fee earner up 40% YOY. 
   --    50% growth in number of fee earners since start of 2022.

-- Days Sales Outstanding (DSO) reduced to 45 days as of 30 June 2022 (versus 66 days year-end 2021).

-- New office openings scheduled in Scotland for H2 2022 to leverage industrial, financial services, retail / consumer, digital / technology and interim management practices across the UK. Experienced executive search leaders already recruited in Scotland to drive this market expansion.

-- EBITDA for H1 2022 is expected to be in the range GBP40k to GBP60k, making progress to pre-covid earnings, but on a reshaped business built for growth. The Group will publish its unaudited interim results for the half year ended 30 June 2022 in mid-August 2022.

Kevin Davidson , Group CEO of Norman Broadbent plc, said:

"We are delighted with the progress the entire business has made and that this is quickly translating into improved financial performance whilst we continue to invest heavily in growth and business transformation.

It is encouraging to see that our immediate focus on re-establishing Norman Broadbent's position at the forefront of executive and board search, along with rebuilding the interim runner book, are both bearing fruit. We have grown our team across multiple core sectors over the past 9 months, especially industrial, digital / technology and retail / consumer. Our Research and Insights team has also continued to expand, and all new appointments have established themselves quickly, adding to the evolving culture of the business and its future prospects.

With continued headcount growth, new office openings scheduled for H2 and a continued focus on higher value search and long-term recurring interim contractor income, I am confident in the trajectory the business is now on. There will clearly be some macro-economic headwinds in the coming months but with a relentless focus on quality, client satisfaction and culture we believe we can continue to build the business whilst generating sustainable profits in the years ahead."

For further information, please contact:

 
 Norman Broadbent plc 
  Kevin Davidson / Peter Searle / Steve 
  Smith                                    020 7484 0000 
 WH Ireland Limited 
  Jessica Cave / Darshan Patel             020 7220 1666

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTQVLFBLDLZBBX

(END) Dow Jones Newswires

July 11, 2022 02:00 ET (06:00 GMT)

Norman Broadbent (LSE:NBB)
Historical Stock Chart
From Dec 2024 to Jan 2025 Click Here for more Norman Broadbent Charts.
Norman Broadbent (LSE:NBB)
Historical Stock Chart
From Jan 2024 to Jan 2025 Click Here for more Norman Broadbent Charts.