REG - Norman Broadbent PLC - Trading Update

Norman BroadbentAnnouncement

11/07/2022 07:00

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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
                     £'000      £'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 £3.3m (H1 2021: £2.7m) driven by growth in Executive
Search NFI.

·    Executive Search NFI grown by 29% to £2.6m (H1 2021: £2.0m) 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 £0.7m,
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 £0.2m.

·    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 £40k to £60k,
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                          020 7484 0000

 Kevin Davidson / Peter Searle / Steve Smith

 WH Ireland Limited                            020 7220 1666

Jessica Cave / Darshan Patel

 

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