Norman Broadbent a good update in unparalleled times

Norman Broadbent

Norman Broadbent plc (LON:NBB) – a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services – has provided the following unaudited trading update relating to the twelve months ended 31 December 2020.

Following the unprecedented events of 2020, the Board is pleased to provide the following trading update:

Highlights and Financial Information:

·    Management moved early and decisively at start of pandemic

·    Group Net Fee Income decreased  YoY by 18% to £6.2m (2019: £7.6m)

·    Gross margin percentage increased to 79% (2019: 66%)

·    Swift cost control measures at onset of pandemic largely offset decrease in Net Fee Income leading to positive Group EBITDA for the full year 2020

·    Improved Group liquidity following significant improvement in Debtor Days

·    Secured a £250,000 six-year term Coronavirus Business Interruption Loan

·    A new £1.5m Invoice Finance Facility to become active in early 2021

·    Pre-audit work commenced – Group anticipates releasing the full results for FY2020 in April 2021

·    Strategic hires made across ‘thrive’ sectors and internal promotions to new leadership roles

·    Established digital marketing and client engagement initiatives came into their own in 2020.  

Mike Brennan, Group CEO of Norman Broadbent, commented:

“2020 was unprecedented yet, despite these unparalleled times, the Norman Broadbent team pulled through and performed. The strategy of building a broader portfolio of services – one we have pursued since I joined the business – stood us in good stead in the run up to, and during, the pandemic. Our broader, more relevant, portfolio of services has enabled us to help clients as they faced their own challenges in 2020. Although our objectives remain the same, the pandemic has amplified them. Put simply, our aim is to help clients manage and successfully drive change, mitigate risk, grow, and succeed.

Notwithstanding the uncertain economic environment, our goal this year is to strive to grow NFI back towards 2019 levels whilst continuing to build upon our successes in 2020 in carefully managing our cost base.

After a tough 2020, I would again like to thank my colleagues for their hard work, innovation and commitment, our clients for placing their continued trust in us, and our supportive shareholders.”

Steve Smith, Group CFO/COO of Norman Broadbent, said

“Under the circumstances these are good results reflecting well on our team and strategy. As the pandemic forced businesses to rethink strategy, pivot and change, our clients have increasingly seen us as a problem-solving partner offering a bespoke mix of progressive high‐quality Search, Interim Management, Research & Insight, Assessment & Development solutions. Our collaborative innovative culture coupled with the trusted Norman Broadbent brand has made us proven business partner, especially during these difficult times.

Looking ahead, we continue to seek growth opportunities and are actively pursuing M&A opportunities, long-term partnerships, and strategic ‘tuck-ins’.” 

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