REG - Norman Broadbent PLC - Trading Update

Norman BroadbentAnnouncement

16/01/2025 07:00

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RNS Number : 5074T  Norman Broadbent PLC  16 January 2025

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 EBITDA(1)
           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 EBITDA(1) 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 cash(2) of £0.1m, down on £0.4m as at 31 December 2023 and
           considerably up on a net debt(2) 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 EBITDA(1) 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                                                                                                          +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)                                                                                       normanbroadbent@almastrategic.com

 Rebecca Sanders-Hewett                                                                                                        +44 (0)20 3405 0205

 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___.YXAxZTpzaG9yZWNhcDphOm86YzVkZGY3MWU5YmI4YjU3NzU2ZWIzMDc3OGYxNzk0YzQ6Njo0ZjRmOjA4ZTJhNzUyMGY0NzYwYTU0MjhlMzUyODQ1NmNjNmRlNWEyMDJiMTdhOTVlNTZiYmQ1ODI2NDJhODNlZDY1MjE6cDpU)

 

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