REG - Norman Broadbent PLC - H1 2024 Trading Update

Norman BroadbentAnnouncement

11/07/2024 07:00

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RNS Number : 9484V  Norman Broadbent PLC  11 July 2024

  11 July 2024

 

Norman Broadbent plc

("Norman Broadbent" or the "Company")

 

H1 2024 TRADING UPDATE

 

Resilient through challenging market conditions and well-positioned to
capitalise on a recovery

 

Norman Broadbent (AIM: NBB), a leading Executive Search and Interim
Management firm, is pleased to announce the following unaudited trading update
for the six months ended 30 June 2024 ("H1 2024").

 

Financial highlights

 ·         Net fee income ("NFI") of £4.5m, down 14% from H1 2023 and up 36% on H1 2022
           o                                         Q2 2024 NFI of £2.3m up 5% on Q1 2024, down 15% on Q2 2023 and up 28% on Q2
                                                     2022
 ·         Underlying EBITDA(1) expected to be in the range of £0.1m to £0.15m (H1
           2023: £0.27m)
 ·         Net debt (excluding lease liabilities) of £0.7m after annual bonus payments,
           a 42% improvement on 30 June 2023
 ·         Executive Search NFI down 4% on H1 2023
 ·         Interim Management down 47% on H1 2023 which, although the smallest part of
           our business, represents 67% of the drop in NFI in H1 2024, primarily through
           a reduction of Fixed Term Contract placements
 ·         Number of search mandates secured up 5% on H1 2023, although average fee value
           per mandate was down 9%, reflecting industry-wide trends, particularly in the
           UK
 ·         £0.1m bad debt provision taken due to clients facing business challenges,
           some of which may be recoverable

( )

( 1 ) Underlying EBITDA excludes share based payment charges

 

Norman Broadbent expects to announce its unaudited interim results for H1 2024
in early September 2024.

 
Kevin Davidson, CEO of Norman Broadbent, commented:

 

"Growth is rarely linear quarter to quarter, but there is no doubt that, as is
the case across the entire executive search and staffing industries, we are
navigating extremely challenging market conditions. However, this doesn't
impact the confidence we have in our prospects. Therefore, while having been
cost conscious in H1 2024, we have continued to invest, growing and upgrading
headcount to ensure that the Company is well positioned to capitalise on the
recovery when it comes.

 

Consistent with our long-term growth ambitions, we are actively exploring
synergistic acquisition opportunities and pursuing high-quality hiring options
in the US. With high levels of staff retention, general economic confidence
beginning to return, inflation seemingly under control and an overall
expectation of an improvement in market conditions in H2 2024, we remain
confident in our ability to deliver on our target of £1.25 million EBITDA by
2025."

 

 

Contacts:

 

 Norman Broadbent plc                                +44 (0)20 7484 0000
 Kevin Davidson, CEO
 Mehr Malik, CFO

 Shore Capital (Nominated Adviser and Broker)        +44 (0)20 7408 4090
 Tom Griffiths / Tom Knibbs (Corporate Advisory)
 Henry Willcocks (Corporate Broking)

 Alma (Financial Communications Adviser)                  +44 (0)20 3405 0205
 Rebecca Sanders-Hewett                              normanbroadbent@almastrategic.com (mailto:normanbroadbent@almastrategic.com)
 Kinvara Verdon
 David Ison

 

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
(https://url.avanan.click/v2/___http:/www.normanbroadbent.com___.YXAxZTpzaG9yZWNhcDphOm86OTdhMTRmYzIzZWY1YzM5MDNmNTdhN2E3NGVmZjI1OGI6NjpjYTk0OjY2MDg2Zjg4M2UxOTVmMGJiZDJkMTg4MTNhYjhhODAyNGRhZjkyMDIwNWMyZTE0YTRiOTZlNGIzZDNjMjU5N2Y6cDpU)

 

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