REG - Norman Broadbent PLC - H1 2023 Trading Update

Norman BroadbentAnnouncement

11/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230711:nRSK5538Fa&default-theme=true

RNS Number : 5538F  Norman Broadbent PLC  11 July 2023

11 July 2023

Norman Broadbent plc

("Norman Broadbent" or the "Company")

 

H1 2023 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 announce the
following unaudited trading update for the 6 months ended 30 June 2023 ("H1
2023").

 

Financial highlights

·    Strong recent growth in net fee income ("NFI") has continued with H1
2023 up 57% to £5.2m (H1 2022: £3.3m).

o  Q2 2023 NFI of £2.7m was up 50% on Q2 2022 (Q2 2022: £1.8m).

o  Executive Search NFI grew by 58% to £4.1m (H1 2022: £2.6m).  This
growth is reflective of the improvements in culture, brand, headcount growth
and quality and seniority of mandates secured by the Company.

o  Interim Management NFI was £1.0m, up 43% on prior year (H1 2022:
£0.7m).

·    £1.0m of NFI generated in June 2023 alone.

·    H1 2023 EBITDA is expected to be in excess of £0.25m (H1 2022:
£0.05m).

·    The pipeline of contracted work continues to remain strong with
£2.3m of contracted revenue in place going into Q3 2023 (30 June 2022:
£1.0m).

·    Average new search fee value increased by 43% and average NFI per fee
earner up 13% compared to H1 2022.

·    35% growth in fee earner headcount since 30 June 2022.

·    Implementation of improved technology platforms in 2023 with new
finance system, HR platform and expense management tool, all of which will
provide improved management information and opportunity for rapid expansion.

 

Norman Broadbent expects to announce its unaudited interim results for H1 2023
later this month.

Kevin Davidson, Group CEO of Norman Broadbent, commented:

"We are delighted with the progress the entire business continues to make.
Our considerable growth in NFI is translating into positive EBITDA and greatly
improved financial performance whilst we continue to invest heavily in
business transformation.  Having joined the Company in September 2021, a year
in which Norman Broadbent delivered a total of £5.8 million NFI, it is very
pleasing to see our NFI in H1 2023 alone  standing at £5.2 million.  This
demonstrates just how far the business has come in a relatively short period.
 

Despite the challenging macro-economic conditions, we have, for some time,
believed that the Company is well positioned in the correct markets at the
appropriate level to ensure continued growth and success.  We are very much
on track to deliver on our target of £1.25 million EBITDA by 2025."

 

 

For further Information, please contact:

Norman Broadbent plc
                                          020
7484 0000

Kevin Davidson, CEO

Mehr Malik, CFO

Shore Capital (Nominated Adviser and Broker)
                      020 7408 4090

Tom Griffiths / Tom Knibbs (Corporate Advisory)

Henry Willcocks (Corporate Broking)

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSFEFMSEDSEFW