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
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Net fee income ("NFI") of £4.5m, down 14% from
H1 2023 and up 36% on H1 2022
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o
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Q2 2024 NFI of £2.3m up 5% on Q1 2024, down 15%
on Q2 2023 and up 28% on Q2 2022
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Underlying EBITDA1 expected to be in
the range of £0.1m to £0.15m (H1 2023: £0.27m)
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Net debt (excluding lease liabilities) of £0.7m
after annual bonus payments, a 42% improvement on 30 June
2023
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Executive Search NFI down 4% on H1
2023
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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
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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
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£0.1m bad debt provision taken due to clients
facing business challenges, some of which may be
recoverable
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[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:
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Norman Broadbent
plc
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+44 (0)20 7484 0000
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Kevin Davidson, CEO
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Mehr Malik, CFO
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Shore Capital (Nominated Adviser and
Broker)
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+44 (0)20 7408 4090
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Tom
Griffiths / Tom Knibbs (Corporate Advisory)
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Henry Willcocks (Corporate
Broking)
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Alma (Financial Communications
Adviser)
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+44 (0)20 3405 0205
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Rebecca Sanders-Hewett
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normanbroadbent@almastrategic.com
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Kinvara Verdon
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David Ison
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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