Norman Broadbent losses widen as it continues transformation

Professional services company Norman Broadbent issued its final results for the 2017 calendar year on Monday, reporting a 15% increase in overall revenue to £6.5m with a “lower but higher quality” headcount.

The AIM-traded firm said new businesses grew substantially in line with its strategy to create a more balanced business of high quality revenue.

Cross selling between brands increased “significantly” during the 12 month period, resulting in around 50% of NB Solutions deals being generated by NB Executive Search

NB Interim revenues were up by £1.1m, or 140%, while NB Leadership Consulting revenues were ahead £0.4m, or 148%.

The board said NB Solutions revenue was ahead £0.2m, or 45%, with the firm’s recently-launched Research & Insight service now starting to contribute.

Those increases were offset by a decline in Search revenues of £0.9m, or 23%, which Norman Broadbent put down to that division’s transformation.

There was a “strong” fourth quarter for NB Executive Search, the board added.

The company’s loss after tax widened by £0.6m, or 60%, to £1.6m, which was reportedly reflective of restructuring costs and an associated short-term impact on fee earner numbers in Search, but masked a strong fourth quarter performance.

Norman Broadbent’s April office relocation was set generate £0.3m in savings per annum for the lease duration, with the board adding that the group was now “more relevant and competitive” in terms of pricing, proposition and people.

Looking at current trading, Norman Broadbent said the fourth quarter of 2017 was the strongest quarter for new wins and revenue during the last financial year, with that positive trend continuing into the first quarter of 2018.

That first quarter was said to have been ahead of the board’s plan at the EBITDA and revenue levels.

“The ongoing reinvention of Norman Broadbent Group is progressing,” said chief executive Mike Brennan.

“Our broader, more integrated service proposition is landing well with clients, the business is increasingly competitive, and culturally we are more innovative and collegiate.

“In summary, the group is now more relevant and competitive in terms of pricing, proposition and people.”

Brennan reiterated that the first quarter of 2018 at the revenue and EBITDA levels was ahead of the board's plan.

“While significant progress has been made in terms of new services, hires and our premises move, collegiate working, there is still a way to go in completing this phase of our transformation.”