UK-based staffing and executive search firm Norman Broadbent reported revenue on 9 September 2024 of £5.0 million for its unaudited interim results for the six months ended 30 June 2024, down 16.7% compared to H1 2023 (£6.1 million).

In its July update, Norman Broadbent cited challenging market conditions in the first six months of its fiscal year ending 30 June 2024.

The group reported net fee income (NFI) of £4.5 million, down 13% on H1 2023 (H1 2023: £5.2 million) and up 36% on H1 2022 (H1 2022: £3.3 million).

Norman Broadbent also reported underlyingEBITDA of £0.13 million, £0.1 million bad debt provision (H1 2023: £0.27 million).

The group reported 20% growth in fee earner headcount year-on-year, positioning the company to capitalise on a recovery, with additional hires taking place in H2 2024.

Kevin Davidson, CEO of Norman Broadbent, said in a press release, “The pressures across the recruitment sector have been well-publicised, and growth has been made even more challenging when compared with an exceptional H1 2023 for the company.”

“Despite this, we continue to win and deliver good quality mandates, and importantly, NFI is still up considerably compared to H1 2022. Taking a longer-term view, the company is in good health, and we remain focused on positioning the company to capitalise on the recovering market,” Davidson said.

“While we cannot influence market conditions, we can control how we adapt to them. A key focus in the year to date has, therefore, been to carefully manage overheads while continuing to make progress by upgrading and developing our talent, enhancing our systems and processes, and reinforcing the culture that underpins the company,” Davidson added.

Davidson said, “While the market remains tough, as reported in recent announcements by virtually all companies in our sector, several industry indicators suggest a gradual stabilisation is underway. We are seeing pockets of increased activity and are encouraged by the gradually improving retainer income so far in Q3 2024. However, given the inherent quarter-to-quarter variability in the company and uncertainty around the pace of the broader recovery, it is difficult to say with any certainty whether we are back on a positive trajectory or if this is an isolated uptick.”

“We continue to take steps to manage the company through the challenging conditions while maintaining sufficient levels of investment to ensure that we capitalise on the opportunities presented by the recovery and have the means to continue to pursue our long-term growth ambitions,” Davidson said. “Crucially, we have strengthened our fee-earning talent considerably, both in terms of quality and headcount, and have ambitious plans to continue in the same vein in the second half and beyond. The board believes this is the right strategy to deliver sustainable and profitable long-term growth.” – this was mentioned earlier

“Looking ahead, the new hires we have made in H1 2024 and those anticipated in the second half, coupled with the hard work that has taken place behind the scenes to strengthen our operations, give us confidence that, assuming the market improves as expected, we will meet our target of £1.25 million of EBITDA in 2025,” Davidson continued.

Norman Broadbent shares last traded on 30 August at 6.88, 37.50% above the 52-week low of £5.00 set on 9 November 2023. The company has a market cap of £4.60 million.