Norman Broadbent (LON: NBB) have today provided an unaudited trading update ahead of its annual results in respect of the year ended 31 December 2018.
· Significant progress towards a return to profitability
· Group revenue increased by £2.6m (+40%) to £9.2m our highest annual revenue in over 10 years
· Group Net Fee Income (“NFI”) increased by £1.6m (+32%) to £6.6m
· 2018 Group operating performance (loss of £0.6m) a significant improvement on 2017 (loss of £1.6m)
· 2018 Group operating performance includes a one off increase in the provision for office dilapidations of £0.1m relating to our former offices
· Loss before tax reduced by £0.9m (-55%) to a 2018 loss before tax of £0.7m
· Interim Management NFI increased by £0.8m (+109%) to £1.5m
· Executive Search NFI increased by £0.7m (+24%) to £3.7m
· Solutions NFI increased by £0.4m (+45%) to £1.2m
· Further improved NFI mix evidences ongoing creation of a more balanced Group
Mike Brennan, CEO of Norman Broadbent, said:
“Our 2018 unaudited results evidence our continued positive momentum, as a result of consistently delivering high quality innovative solutions for clients. There is positive trajectory in top line growth and a further significant reduction of losses.
As stated in the 2018 Half Year results, 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. We enjoyed record 32% NFI growth during 2018 and are confident of continued double digit growth in 2019, although given the outstanding growth in 2018, being prudent, we are understandably cautious about predicting a similar year-on-year NFI % increase.
At EBITDA level, we are confident that we will continue seeing losses reduce as NFI continues to rise in 2019. We continue to invest in talent to support the growth in the Company, which impacts costs in the short term, but operational efficiencies continue to kick-in and we maintain a tight control over costs.
With the Group delivering a significant set of results, 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.”