This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

  27 September 2021

Norman Broadbent plc

("Norman Broadbent", "NBB", "the Company" or "the Group")

Interim Results 

The Board of Norman Broadbent plc (AIM: NBB) (the "Board") - a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services - is pleased to announce the Group's unaudited interim results for the six months ended 30 June 2021.

Highlights

·      Positive EBITDA for H1 2021

·      Improvement in debtor days at end of H1 2021 to 54 (31 Dec 2020: 57 days)

·      Reduction of operating expenses by 17% compared to same period last year

·      Continued disruption due to the Covid-19 pandemic has impacted NFI, which reduced by 30% to £3.1m, however cost focus from the business resulted in the Company remaining EBITDA positive.

Post Interim period end

·      Kevin Davidson appointed as CEO and engaged in accelerated growth plan

·      Board strengthened with appointment of Angela Hickmore as non-executive director

·      In order to strengthen the Company's cash position, the Company intends to raise c.£297,000 by way of subscription, supported by the Company's existing shareholders  

Norman Broadbent Group Executive Chairman, Peter Searle  said:

"These are a solid set of results and it's pleasing to see positive EBITDA in the first half of 2021 despite the continued disruption due to the Covid-19 pandemic.  We now have the leadership team in place to begin leveraging the full  potential of the Norman Broadbent brand which remains highly respected across executive search and interim markets. ."

Steve Smith, Norman Broadbent Group CFO/COO, added:

"During the first half of 2021, the Group replaced it's back office systems and simplified it's structure.  Additionally, leases on our offices in London and Knutsford were renewed at significantly improved terms.  These initiatives have secured capacity for considerable growth whilst also reducing our fixed cost base, enabling increased investment across our fee earning teams "

For further information please contact:

Norman Broadbent plc                                                                                  

Peter Searle

Kevin Davidson

Steve Smith                                                                                                          020 7484 0000

WH Ireland Limited

Adrian Hadden

Jessica Cave

Darshan Patel

                                                                                                                                020 7220 1666

About Norman Broadbent plc:

Norman Broadbent plc (AIM: NBB) is a leading Professional Services firm focusing on Talent Acquisition & Advisory Services. Since its formation nearly 40 years ago, Norman Broadbent has developed a portfolio of complementary services centered on Executive Search Solutions, Senior Interim Management, Research & Insight, and Leadership Consulting & Assessment. Unusually, Norman Broadbent is one of the few businesses of its type offering clients integrated Executive Search and Interim Management Solutions. This innovative approach gives clients immediate access to business-critical executive-level Talent, meeting both short and longer-term needs.

Information on Subscription:

As noted above, the Company announces its intention to raise approximately £297,380 before expenses by way of a subscription of 4,405,635 ordinary shares  ("Ordinary Shares") at 6.75 pence per Ordinary Share (the "Issue Price") ("the Subscription Shares") (the "Subscription").

The Issue Price represents a premium of approximately 6.3 per cent to the closing mid-market price of NBB's existing Ordinary Shares on 24 September 2021 (being the last business day prior to this Announcement).

The funds will be used for general working capital purposes, as well as investment in new fee earners scheduled to join the business from October 2021 onwards.

The Subscription is not being underwritten and is conditional on admission of the Subscription Shares to trading on AIM. The Subscription is being conducted pursuant to the existing authorities granted to the Directors of the Company at its annual general meeting on 25 June 2021. The Company will announce the results of the Subscription to the market in due course.

The Company continues to monitor its working capital position, as well as its requirement for funding to pursue its growth strategy. The Company has had discussions with significant shareholders with regards to further funding options in addition to the Subscription, and the Board will update shareholders when appropriate.

Financial Statements:

CFO Review:

In the six months to 30 June 2021, the Group reported positive EBITDA of £6,000 (H1 2020: £11,000) on turnover of £3,095,000 (H1 2020: £4,430,000). We are pleased with this result which has been achieved during a period of continued disruption due to the Covid-19 pandemic.

The Group continues to provide a more balanced service providing clients with an integrated range of relevant, complementary, progressive, and sophisticated offerings. This not only helps us serve our clients better, but also enables us to differentiate ourselves in what is becoming an increasingly transactional and commoditised traditional executive search market. 

Our aim is to continue strategically scaling all business units. As we continue to grow, we will maintain our focus on innovation, client-service, enhancing our established brand, the growth of high-quality recurring revenues, and continued profitability. Despite the pandemic, we have not been deflected from pursuing our long-term strategy. This has seen us transition the Group over the past few years to a business which is structured around specific industry and functional hubs and away from individual teams focussing on their own service line. This strong client focus benefits our customers and, in turn, benefits the company as evidenced by the record levels of internal referrals of work. By making this change we are no longer a traditional, siloed, pure-play executive search business but something much broader, more progressive, and relevant in today's market. Increasingly our clients see us for what we now are - a problem-solving business partner offering bespoke solutions incorporating Consulting, Interim, Research & Insight, and high‐quality fully retained Search Solutions.

Summarised Financial Results:

The table below summarises the results for the Group.

Financial Position

Equity shareholders' funds were £963,000 as at 30 June 2021 (31 Dec 2020: £1,106,000), with net current liabilities of £672,000 (net current liabilities 31 Dec 2020:  £504,000). Cash and cash equivalents at 30 June 2021 amounted to £83,000 (31 Dec 2020: £367,000; 30 June 2020: £399,000).

Net cash outflow from operations was £149,000 (31 Dec 2020: £515,000 inflow) and net cash outflow from financing activities amounted to £116,000 (31 Dec 2020: £492,000 outflow).

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six-month period ended 30 June 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2021

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six month period ended 30 June 2021

CONSOLIDATED STATEMENT OF CASH FLOW

For the six-month period ended 30 June 2021

NOTES TO THE FINANCIAL STATEMENTS

1.         ACCOUNTING POLICIES

1.1       Basis of preparation

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2020, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those statements was unqualified.

The interim financial information for the six months ended 30 June 2021, has been prepared in accordance with the AIM Rules for Companies. The Group has not elected to apply IAS 34 'Interim Financial Reporting'. The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 31 December 2021 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2020. The interim financial statements have not been audited.

1.2       Basis of consolidation and business combinations

Group financial statements consolidate those of the Company and of the following subsidiary undertakings:

* 100 per cent of the issued share capital of this company is owned by Norman Broadbent Overseas Ltd.

2.         copies of the unaudited interim report

Copies of this report are available on request from the Company's registered office at Millbank Tower, 21-24 Millbank, London SW1P 4QP and are also available on the Company's website at www.normanbroadbent.com.

3.         SEGMENTAL ANALYSIS

Group revenues are primarily driven from UK operations, however when revenue is derived from overseas business the results are presented to the Board by geographic region to identify potential areas for growth or those posing potential risks to the Group.

i)          Revenue and gross profit by geography:

4.         earnings PER ORDINARY SHARE

i)          Basic earnings per share:

This is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period:

ii)             Diluted earnings per share:

This is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has issued share options which are potentially dilutive. A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to the outstanding options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

iii)        Adjusted earnings per share

Adjusted earnings per share has also been calculated in addition to the basic and diluted earnings per share and is based on earnings adjusted to eliminate charges for share based payments. It has been calculated to allow shareholders to gain a clearer understanding of the trading performance of the Group.

5.            PROVISIONS

6.            RELATED PARTY TRANSACTIONS