Norman Broadbent plc (LON:NBB), has today announced the Groups unaudited interim results for the six months ended 30 June 2018.
· Significant progress towards a return to profitability
· Group revenue increased by £1.37m (+42%) to £4.7m
· Net Fee Income (“NFI”) increased by £0.7m (+27%) to £3.3m
· Loss after tax reduced by £0.4m (-61%) to a H1 2018 loss of £0.3m
· Interim Management NFI increased by £464,000 (+139%) to £799,000
· H1 2018 Group operating performance (loss of £0.2m) a significant improvement on preceding period (H2 2017 loss of £1m)
· Successfully relocated to new Central London offices generating projected annual savings of £0.3m
· H1 2018 Group performance slightly ahead of Board expectations
Mike Brennan, CEO of Norman Broadbent, said:
“As Phase Two of our transformation maintains momentum, we are increasingly and consistently delivering high quality innovative solutions for clients, often combining a number of our different service lines.
From an NFI perspective, we have created a more balanced Group combining recurring annuity revenue, with a range of consulting, research-related and high-quality fully-retained Talent Acquisition fees.
Having posted a loss of £1m in H2 2017, I am pleased with the significant improvement in H1 2018, reducing the loss to £0.3m.
With the Group delivering ahead of Board expectations in the first half, I would 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.”
The Group, in the six months to 30 June 2018 incurred an operating loss of £234,000 (2017: loss £667,000) on turnover of £4,667,000 (2017: £3,292,000). This improved performance represents a 65% reduction compared with H1 2017. In addition the Group has reduced the operating loss from the preceding period (six months ended 31 December 2017) by £659,000 or 74%.
The results for the previous two six month periods demonstrate the positive and ongoing impact of the transformational changes being made across the Group.
The results evidence how we are creating a more balanced Group made up of complementary high-quality and recurring annuity revenue streams.
Whilst our established Search business (which currently incorporates our growing Research & Insight revenues) contributed 54% of NFI, our Interim, Solutions, Insight, and Consulting brands are increasing their percentage share of Group NFI. As they grow, even greater balance will be created across the Group.
Our diverse portfolio of services continues to gain traction in the market as clients increasingly utilise our more integrated, progressive and sophisticated offerings in addition to our proven ‘Search’ service.
We are on track to strategically scale the business with further high quality additions to the teams. As our transformation progresses, we will maintain our focus on innovation, client-service, enhancing our established brand, the continued growth of high-quality recurring revenues, and ultimately a return to profitability.
Having served as Non-Executive Chairman since 2016, Frank Carter is stepping down to pursue other interests. On behalf of the Board I would like to thank Frank for his help and insight as we transformed the Company into a more balanced, integrated and innovative Professional Services business. Our Search for a successor is already underway and we will announce the new appointment in due course.
I am pleased to announce the appointment of Fiona McAnena as a Non-Executive Director. Fiona, 54, will join the Board with immediate effect. She will serve alongside long-standing NED, Brian Stephens.
Fiona has a background in strategic marketing and brand consultancy. She is a business adviser and NED with broad expertise in creating and executing consumer and customer led strategies for growth and commercial impact. She has continuous and diverse experience as an NED over twenty years, having sat on committees such as finance, audit and risk, and nominations across three boards. With executive experience in major corporates such as PepsiCo (Vice President, Innovation), WPP (Group Development Director, Kantar Insight & Consulting and CEO of MEC UK), and BUPA (Global Brand Director) she brings a customer and consumer lens to business questions.
As we seek to further enhance our brands, and refine our messaging into the markets, Fiona’s experience will be a great asset to the Group.
Norman Broadbent plc is a leading Professional Services firm focusing on Talent Acquisition & Advisory Services. Since its formation nearly 40 years ago, NBB has developed a portfolio of complementary service centered on Board & Leadership/Executive Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Recruitment Solutions. Unusually, NBB is one of the few businesses of its type offering clients an integrated Executive Search and Interim Management offering. This innovative approach gives clients access to business critical executive-level Talent, meeting both short and longer-term needs.