Recruiter specialising in executive search and increasingly consultancy services
Net fee income (NFI) hit a record in 2018
Revenues rose by 40%
Looking towards profitability
What it does
“The market still looks at us a traditional executive search firm,” says chief executive Mike Brennan
“And while we still do that type of work (for the highest levels of British industry), we now do lots of other things as well."
He points out that three years ago 80% of revenue came out of the executive search business, but now that proportion is down to around to 50%.
Four legs better than one
Brennan took over three years ago and recognised that while Norman Broadbent was a great brand, executive search was becoming increasingly commoditised and competitive.
He looked at how audit firms had diversified into consultancy and other services and applied a similar logic.
Broadbent now has four legs: Insight & research, interim, consultant services and executive search.
In 2018, Interim Management fee income increased by 109%; executive search fees increased by 24% and solutions by 45%.
What the boss says
“"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. “
Bottom line progression
Brennan added net fee income rose by 32% to hit a new record of £6.6mln in 2018 and should see a further double-digit increase in the current twelve months.
“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 tight control over costs.”
Move in to profit as revenues continue to increase
Potential to expand by acquisition as size of business increases
At 12.75p, AIM-listed Broadbent is valued at £6.5mln.