THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF
INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE
INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE
REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
Norman Broadbent plc
("Norman Broadbent",
the "Company" or the "Group")
Trading Update
Solid performance in challenging
conditions with strong momentum into 2025
Norman Broadbent (AIM: NBB), a leading
Executive Search and Interim Management firm, provides the
following unaudited trading update for the three months ended 31
December 2024 ("Q4 2024")
and the year ended 31 December 2024 ("FY24").
Q4 2024
Highlights
|
·
|
Q4 2024 was the Company's strongest
quarter of the year with Group Net Fee Income ("NFI") of £2.5m, being more than 10%
above the Q1-Q3 2024 average and only slightly down on the
comparable period in the preceding year (Q4 2023: £2.6m; Q4 2022:
£2.3m)
|
|
·
|
Retainer income, a key driver of
recurring revenue, was up 44% year-on-year and 34% higher than the
2024 quarterly average
|
|
·
|
Positive momentum has continued into
2025 with contracted revenues up 40% year-on-year to £2.1m (FY24:
£1.5m; FY23: £1.8m)
|
FY 2024
Highlights
|
·
|
FY 2024 was the Company's second-best annual NFI and underlying
EBITDA1
performance in over a decade:
|
|
|
o
NFI of £9.3m, down 13% on a record FY23 (FY23:
£10.5m) and up 27% on FY22 (FY22: £7.3m)
|
|
|
o
Underlying EBITDA1 expected
to be more than £0.25m, down from a record £0.9m in FY23 and up
from £0.1m in FY22
|
|
·
|
Loss before tax of approximately
£0.2m, reflecting market conditions and strategic investment,
represents a decline from FY23's £0.3m profit and an improvement on
FY22's loss of £0.3m
|
|
·
|
Year-end net cash2 of
£0.1m, down on £0.4m as at 31 December 2023 and considerably up on
a net debt2 position of £1.1m as at 31 December
2022
|
1 excludes share based payment charges
2 excluding lease liabilities
Kevin
Davidson, CEO of Norman Broadbent, commented:
"Despite
persistent macroeconomic and labour market challenges, the Company
delivered its second-best annual trading performance in over a
decade, achieving healthy underlying
EBITDA1 and, pleasingly, ended the year with a
positive net cash position.
During the
year, we upgraded our talent and selectively grew fee-generating
headcount, with more high-calibre individuals due to be joining the
Company in the first quarter. We have also strengthened our
organisational foundations, moved to new London offices and
invested in enhanced systems and processes that will boost
productivity across the Group. Our award-winning culture remains a
key differentiator, and we continue to earn recognition for
fostering an exceptional workplace environment.
Whilst we
expect market headwinds to persist for at least the first half of
2025, the momentum generated in Q4 FY24 puts us in a strong
position relative to many of our peers. Following the successful
business turnaround, the Company has demonstrated its resilience
and ability to perform in tough conditions, reinforcing our
confidence in the future.
Looking
ahead, we are focused on building on our success to date and
driving growth. As part of this, we are exploring ways to expand
our international presence, while actively seeking synergistic
acquisition opportunities to establish an industry consolidation
platform.
We remain
confident in delivering our previously stated target of £1.25
million of EBITDA in the medium term. Whilst our ability to achieve
this in 2025 will be heavily influenced by macro conditions and the
timing of any market recovery, the Company is in excellent shape
and well placed to rapidly capitalise when conditions
improve."
For further
information please contact:
|
Norman
Broadbent plc
Kevin Davidson, CEO
Mehr Malik,
CFO
|
+44 (0)20 7484 0000
|
|
Shore
Capital (Nominated Adviser and
Broker)
Tom Griffiths / Tom Knibbs (Corporate
Advisory)
Henry Willcocks (Corporate Broking)
|
+44 (0)20 7408 4090
|
|
Alma (Financial
Communications Adviser)
Rebecca Sanders-Hewett
Kinvara Verdon
David Ison
|
normanbroadbent@almastrategic.com
+44 (0)20 3405 0205
|
About Norman
Broadbent:
Norman Broadbent (AIM: NBB) is a professional
services firm focused on executive search, senior interim
management solutions and bespoke leadership advisory services
working across the UK and internationally.
Established as the first UK-headquartered
search firm in 1979, the firm has a 40+ year track record of
shaping leadership across industries including Consumer, Financial
Services, Industrials, Life Sciences, Investor and TMT.
www.normanbroadbent.com
