Executive search and recruitment firm Norman Broadbent (NBB: LSE) today provided an unaudited trading update ahead of its annual results for the year ended 31 December 2018. Group revenue increased by 40% to £9.2 million, the highest annual revenue in over ten years.

Group Net Fee Income increased by 32% to £6.6 million during the period.

The group added that loss before tax reduced by £0.9 million (-55%) to a 2018 loss before tax of £0.7 million.

The group posted its operating performance, a loss of £0.6 million, which was an improvement over 2017’s loss of £1.6 million. The group’s 2018 operating performance includes a one-off increase in the provision for office dilapidations of £0.1 million relating to former offices.

Interim Management NFI increased by 109% to £1.5 million. Executive Search NFI increased by 24% to £3.7 million. Solutions NFI increased by 45% to £1.2 million.

The group added that further improved NFI mix evidences ongoing creation of a more balanced group.

Mike Brennan, CEO of Norman Broadbent, commented, "Our 2018 unaudited results evidence our continued positive momentum, as a result of consistently delivering high quality innovative solutions for clients. There is positive trajectory in top line growth and a further significant reduction of losses.”

“As stated in the 2018 half year results, from an 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.”

“We enjoyed record 32% NFI growth during 2018 and are confident of continued double digit growth in 2019, although given the outstanding growth in 2018, being prudent, we are understandably cautious about predicting a similar year-on-year NFI % increase,” Brennan said.

“At EBITDA level, we are confident that we will continue seeing losses reduce as NFI continues to rise in 2019,” Brennan said. “We continue to invest in talent to support the growth in the company, which impacts costs in the short term, but operational efficiencies continue to kick-in and we maintain a tight control over costs.”

As of last trade Norman Broadbent) traded at £12.00, no change on the day and 17.24% below its 52-week high of £14.50, set on 15 February 2018. Based on its current share price the company has a market value of £6.47 million.