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 four 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 a number of divisions including: solutions, interim management, consulting and executive search.
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.”
Bottom line progression
Broadbent posted a profit in its first half in what it said was a “major landmark” following a change to its business model.
For the six months ended 30 June, the professional services firm reported an operating profit of £55,000, swinging from a £234,000 loss in the prior year.
Pre-tax profits were £16,000.
Revenues rose 13% to £5.2mln with net fee income (NFI), account-related charges and a key measurement of financial health for recruiters, up 7% at £3.5mln.
Solutions NFI was £901,000, an increase of £283,000 (+46%) on the prior six months and the best ever NFI and PBT results
What the boss says: Mike Brennan, CEO
"These are positive results and evidence our progression.
"We remain confident that we will see continued top-line and Net Fee Income growth, along with an improved bottom line for 2019."
Potential to expand by acquisition as size of business increases
At 8.25p, AIM-listed Broadbent is valued at £4.5mln.