Norman Broadbent, the London-listed executive search and recruitment firm (NBB: LSE), reported organic revenue growth of 41% to a total of £12.3 million in its audited final results for the year ended 31 December 2023.

Group net fee income increased 44% to £10.5 million (FY22: £7.3m).

At the same time, underlying EBITDA stood at approximately £0.9 million (FY22: £0.1 million). The group also returned to profit, reporting profit before tax of approximately £0.3 million (FY22: loss before tax £0.3 million).

Kevin Davidson, CEO of Norman Broadbent, said,"I am delighted with the performance of our team, delivering outstanding results in the context of a challenging macro-economic environment. Their dedication and drive has brought the business back to levels of performance not seen in well over a decade.”

Davidson added, “The results in FY23 demonstrate just how much the turnaround of Norman Broadbent plc has achieved in a short period of time. Having now delivered the strongest results in a decade, the Board and leadership team have their sights very much fixed on an ambitious, but sustainable, growth plan.”

“We have taken the opportunity to invest further in the company, hiring exceptional people and building our platform to take advantage of the market rebound when it comes,” Davidson said. “Our ambition remains steadfast and we will continue to pursue our aggressive growth strategy, whilst remaining profitable and cash positive, both organically and potentially through synergistic M&A opportunities.”

Revenue by division

Revenue by geography

Davidson said, “We continued to grow our headcount while also investing in supporting infrastructure and technologies to both modernise and prepare the platform for accelerated future expansion. I am delighted that all of our objectives have so far been met and I am increasingly confident in our ability to position our incredible brand as a global leader in senior executive search and interim management.”

“During 2023, Norman Broadbent placed leaders across the UK, Europe, the US, Australasia and the Middle East covering multiple sectors and disciplines. As this year has proven, our business is well balanced across both resilient and rapid growth sectors where there is a considerable shortage of leadership talent,” Davidson added.

Looking ahead, the group said it is confident that it will deliver net fee income in excess of £15 million by 2025 and EBITDA in excess of £1.25 million.

“We are looking to the future with confidence,” Davidson said. “There are clearly macro-economic headwinds which we are monitoring carefully, but 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 rapidly whilst also delivering positive and sustainable EBITDA.”

“Whilst difficulties were experienced in FY23 by many businesses across executive search and the broader recruitment industry, we have delivered and intend to capitalise on our positive momentum to grow the team further in preparation for a broader economic recovery,” Davidson said.

Chairman Peter Searle added, “Throughout 2024, the executive team will continue to invest further in our headcount adding both experienced consultants and researchers. They will continue to reorganise and strengthen our support functions and invest in leading edge technology to bolster this growth.”

Norman Broadbent shares last traded at £7.75, no change on the day and 5.49% below its 52-week high of £8.20, set on 4 March 2024. The company has a market cap of £4.95 million.