Revenue at London-listed executive search and recruitment firm Norman Broadbent (NBB: LSE) increased by 53.8% year-on-year to £6.1 million in its unaudited interim results for the six months ended 30 June 2022.

Net fee income (NFI) for the H1 period was up 58% to £5.2 million (H1 2022: £3.3 million). Q2 2023 NFI increased by 50% to £2.7 million (Q2 2022: £1.8 million).

The group said underlying EBITDA growth reflects the improvements made in the culture, brand, headcount growth and quality and seniority of mandates secured.

Norman Broadbent reported profit after tax of £8,000 (H1 2022: loss after tax £72,000). It added that this was the first profitable H1 since 2019.

Executive Search NFI grew by 58% to £4.1 million (H1 2022: £2.6 million) while Interim Management NFI was up 43% to £1.0 million (H1 2022: £0.7 million).

Kevin Davidson, CEO of Norman Broadbent, said, "I am delighted to be announcing such strong results which demonstrate the quality and dedication of the team and the culture of excellence which we have established together over the past couple of years. This platform has enabled us to retain and hire exceptional talent in a market which continues to be extremely competitive.”

“We have strengthened the business in all areas with economies of scale and efficiency improvements beginning to benefit the bottom line,” Davidson said. “Having delivered a profit after tax for the first time since H1 2019, the substantial carried forward tax losses of over £14 million begin to be of significant value as we expect to deliver sustainable and accelerated growth in the years ahead.”

The company said in H1 2023, it placed leaders across the UK and Europe, the US, South America, the Middle East and Asia. It added that the company has purposefully developed its international client base and brand over the past two years and it is ‘very pleasing’ to see that 29% of H1 2023's NFI was generated from international assignments (H1 2022: 24%). 

“This international spread of business enables the company to capitalise fully on global key accounts, secure the most senior mandates, mitigate risk and open multiple fronts for continued growth,” the group stated.

Looking ahead, Davidson said, “Despite a challenging market, we look forward with confidence and excitement about what can be achieved again at Norman Broadbent.  Looking ahead, we remain conscious of the macro-economic environment, but continue to see a strong pipeline of opportunities giving us confidence as we head into H2.”

“With considerable forward momentum, the board is confident of delivering strong results in H2 2023 and is increasingly confident about achieving its medium-term target of £1.25 million of EBITDA by 2025,” Davidson said.

Shares in Norman Broadbent last traded at £5.48, up 9.60% on the day and 20.87% below its 52-week high of £6.93, set on 23 May 2023. The company has a market cap of £3.09 million.