The Board of Norman Broadbent plc (LON:NBB) – a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions) – has today announced the Group’s unaudited interim results for the six months ended 30 June 2019
Mike Brennan, Norman Broadbent Group CEO, said:
“I am pleased to report that the first six months of 2019 have seen continued positive top line growth. We also recorded a small profit before tax – the first for many years. The return to profitability in H1 is an extremely important milestone for the Group. Having posted a loss of £0.3m in H1 2018, and a loss of £0.5m in H2 2018, I am pleased with the significant improvement in H1 2019 which saw the Group return to profit.
These results validate our strategy of building a more diversified business supplying high value, more relevant services to clients. As we build a disruptive, market leading Professional Services business, we continue to attract, and invest in, high‐quality Talent keen to join us on our journey.
On achieving this milestone, I would like to again thank my colleagues for their continued hard work, innovation and commitment, our clients for placing their continued trust in us, and our supportive shareholders”
Highlights
· The Group posted a small profit before tax
· Group revenue increased by £0.6m (+13%) to £5.2m
· Net Fee Income (NFI) increased by £0.2m (+7%) to £3.5m
· Group Operating Profit was £55,000 against a Group Operating Loss of £234,000 in H1 2018
· PBT was £16,000 against a loss of £265,000 in H1 2018
· Interim Management NFI for H1 2019 was £900,000, an increase of £101,000 from H1 2018 (+13%)
· Following a change in leadership, Solutions H1 2019 NFI was £901,000, an increase of £283,000 (+46%) on the prior six months, and the best ever NFI and PBT results
· New and enhanced Working Capital Facility agreed with Bibby Financial Services
CEO Review:
In the six months to 30 June 2019, the Group posted an operating profit of £55,000 (2018: loss £234,000) on turnover of £5,260,000 (2018: £4,667,000). The achievement of operating profit for the first six months is a major landmark in our strategic journey.
The Group has changed from a predominantly single service executive search business to an enterprise providing our clients with an integrated range of complementary, progressive, and sophisticated offerings geared specifically to their needs. This not only helps us serve our clients better, but also enables us to differentiate ourselves in what is becoming an increasingly transactional/commoditised traditional executive search market. This also helps build a more balanced Group with complementary, high-quality recurring annuity type revenue streams.
The rebalancing of our service mix saw our established Executive Search business, (including Insight and Research revenue), contribute 46% of Net fee Income (56% in the year to 31 December 2018) with Interim and Solutions both growing and increasing their percentage share of Group Net Fee Income. This continued overall growth across the Group, and the introduction of new services has created a more relevant and balanced business.
Our aim is to continue strategically scaling all of the business units via the development of our existing resources and, where appropriate, the selective recruitment of high quality Talent to the Group. As we continue to grow, we will maintain our focus on innovation, client-service, enhancing our established brand, the growth of high-quality recurring revenues, and a return to profitability.
