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Norman Broadbent Plc: DEEP DIVE
OVERVIEW

Norman Broadbent reaps benefits of broader spread of activities

Executive search still accounts for the majority of sales but customers are increasingly using its other services
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OVERVIEW: NBB The Big Picture
Broadbent now has four divisions

 

  • 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

Executive search still accounts for the majority of sales but customers are increasingly using the other services Norman Broadbent Plc (LON:NBB) provides.

“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%.

 

Industry recognition

In June, group chief executive officer, Mike Brennan was selected as a winner and recipient of CEO Today Magazine’s 2019 European Business Award. 

Brennan said: "The award is a huge recognition for our team who have shown considerable commitment during the successful transformation of the Norman Broadbent Group.”

 

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.”

 

Blue sky

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.

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Norman Broadbent Plc Timeline

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June 10 2019
Executive search still accounts for the majority of sales but customers are increasingly using its other services

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