Executive search and recruitment firm Norman Broadbent (NBB: LSE) announced its unaudited interim results for the six months ended 30 June 2018 with group revenue of £4.66 million, an increase of 42% from £3.29 million last year.

According to Norman Broadbent, the group’s H1 2018 performance was slightly ahead of Board expectations.

During the period of H1 2018, the group reported a significant reduction in operating loss as well as a loss after tax.

Mike Brennan, CEO of Norman Broadbent, said, "As Phase Two of our transformation maintains momentum, we are increasingly and consistently delivering high-quality, innovative solutions for clients, often combining a number of our different service lines.”

“From a Net Fee Income (NFI) perspective, we have created a more balanced group combining recurring annuity revenue, with a range of consulting, research-related and high-quality fully-retained Talent Acquisition fees.”

 “Having posted a loss of £1 million in H2 2017, I am pleased with the significant improvement in H1 2018, reducing the loss to £0.3 million,” Brennan said.

In Norman Broadbent Executive Search, the group continued to recover momentum after the significant restructure of the last 12 months. NFI for H1 2018 was £1.77 million, an increase of £356,000 from H1 2017 (+25%). The division made a small loss of £18,000 for H1 2018 compared with a loss of £566,000 in H1 2017.

Norman Broadbent Interim Management was re-launched at the end of 2016 and continues to grow. NFI for H1 2018 was £799,000, an increase of £464,000 from H1 2017. NBIM reported a profit of £118,000 for H1 2018 compared to a loss of £113,000 in H1 2017.

Norman Broadbent Solutions reported NFI for H1 2018 was £618,000, an increase of £245,000 from H1 2017 (+66%). The segment posted a Profit Before Tax of £66,000 compared with a loss of £62,000 in H1 2017.

In Norman Broadbent Leadership Consulting, the group said it was not able to replicate the success of H1 2017, declining from a profit before tax of £365,000 in H1 2017 to a loss of £44,000 in H1 2018. This reflected a pause in the assessment and development programmes of some of the group’s larger customers.

“While our established Search business (which currently incorporates our growing Research & Insight revenues) contributed 54% of NFI, our Interim, Solutions, Insight, and Consulting brands are increasing their percentage share of Group NFI.  As they grow, even greater balance will be created across the group,” Brennan said.

During the period, the group announced that Non-Executive Chairman Frank Carter is stepping down to pursue other interests. He served in the role since 2016. The group said it will announce a new appointment in due course.

Norman Broadbent also announced that it has appointed Fiona McAnena as a Non-Executive Director. She has executive experience in major corporates such as PepsiCo (Vice President, Innovation), WPP (Group Development Director, Kantar Insight & Consulting and CEO of MEC UK), and BUPA (Global Brand Director).

Looking ahead, Brennan said, “The business is now well positioned, and our aim is to continue building on the significant work carried out to date. “These are positive results for us, and evidence our progression.”

“We are on track to strategically scale the business with further high-quality additions to the teams,” Brennan said. “As our transformation progresses, we will maintain our focus on innovation, client-service, enhancing our established brand, the continued growth of high-quality recurring revenues, and ultimately a return to profitability.”

In trading on Friday, Norman Broadbent shares closed at £10.75, no change on the day. Based on its current share price the company has a market value of £5.79 million.