Norman Broadbent PLC (AIM:NBB) said it achieved considerable growth in headcount in the first six months of the year as the recruitment consultant reported significantly higher net fee income and underlying profit.
Revenue came in at £3.96mln in the six-month period to 30 June 2022, a rise of 28% on the first half last year, while growth in executive search drove a 20% rise in net fee income (NFI) to £3.30mln.
Underlying profit (EBITDA) grew to £55,000 from £6,000.
"I am delighted with H1 2022's performance and our forward momentum, generating EBITDA whilst also growing headcount significantly with very high calibre individuals in key markets," chief executive officer Kevin Davidson said.
“Despite the challenging economic back-drop, I remain confident in the shape and position the business is now in to deliver sustainable and accelerated growth in both NFI and EBITDA in H2 2022 and beyond."
Days Sales Outstanding (DSO) fell to 45 days as at 30 June from 66 days a year earlier.
The number of fee earners has grown by 50% since the start of 2022, the company said, adding it has already made four further key hires in the second half of the year with more in the pipeline.
In May, the company secured a £400,000 in the form from a convertible loan note from two of its significant shareholders to support headcount growth. All new appointments to date “have delivered revenue earlier than forecast”, it noted.
Looking ahead, Norman Broadbent said the hires already secured for the second half of the year will expand its position in Retail & Consumer, Finance, HR and Legal across executive search and senior interim management.
The company said it placed leaders across the UK and Europe, the US and the Middle East in the first half, while securing mandates in Africa and AsiaPac early in the second half.
In addition, it has established itself on a number of Preferred Supplier Lists (PSL) with substantial blue-chip clients operating internationally, specifically in the Natural Resources and Energy sectors.
It said regional growth in Scotland is progressing well and that it will shortly be moving into offices in Aberdeen, while a physical Edinburgh office is expected to open by the end of the first quarter next year.
Commenting on the macro-economic climate, CEO Davidson said the company is monitoring headwinds carefully, but added that “with a heavy bias towards growing and counter-cyclical sectors, a refreshed culture, an absolute focus on quality and the ongoing attraction of exceptionally talented and dedicated colleagues, the board is confident that the company can continue to grow whilst also delivering positive EBITDA”.