Norman Broadbent reports buoyant third quarter

12th Oct 2023 13:33

(Sharecast News) - Executive search and interim management specialist Norman Broadbent reported a buoyant third quarter in an update on Thursday.

The AIM-traded firm recorded a 60% surge in revenue to £3.2m, up from the £2m reported in the same period in 2022.

A significant growth trajectory was seen in net fee income (NFI), which scaled up 65% to £2.8m from £1.7m.

Yielding from a combination of sustained average fee growth and an augment in productive headcount across pivotal sectors, year-to-date NFI stood at £7.9m, up 58% year-on-year.

At the close of the third quarter, the company's contracted revenue pipeline had swelled to £2.1m, marking a 62% uptick from £1.3m at the same point in 2022.

"I am delighted to announce our strongest quarterly performance since well before the onset of Covid-19, particularly given that the summer months tend to be the softest in our industry, and against the backdrop of a challenged recruitment sector generally," said chief executive officer Kevin Davidson.

"Since implementing the strategy outlined when I joined in September 2021, the company has returned to profitability, and year-to-date NFI has doubled since then.

"The investments made in our people, processes and supporting technologies have begun to deliver encouraging results and we have ambitious and sustainable growth plans."

Davidson said the board was increasingly confident in the company's ability to deliver and exceed the previously stated target of £1.25m EBITDA by 2025.

"This will be driven by the continued elevation of performance and productivity within the established team and high-quality headcount growth across our core market sectors, as we have successfully delivered over the past two years."

At 1116 BST, shares in Norman Broadbent were up 22.64% at 6.74p.

Reporting by Josh White for Sharecast.com.