Norman Broadbent plc (LON:NBB), a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions), has announced that Devyani Vaishampayan will be joining the Board as a Non-Executive Director effective from today and will also be appointed as Chair of the Audit Committee.

Devyani Vaishampayan is currently CEO of the HR TECH partnership, which runs the Human Capital Digital Innovation Hub, which focuses on producing Digital/AI solutions to human capital challenges. The firm runs innovation hubs, helping organisations engage and learn about digital disruption around culture, people and skills. It also invests in AI-based workplace digital start-ups. She is also a Non-Executive Director and REMCO member with The Law Society and the British Quality Foundation.

Prior to this, Devyani has been an international and multi-sector senior HR Director across a number of industries, including engineering, telecoms, oil & gas, banking, professional services and technology. She was previously Group HR Director (UK) at British Standards Institution and AET Tankers and has experience of large international businesses, such as Citibank, G4S, AT&T, Rolls-Royce and BG Group.

Peter Searle, Norman Broadbent Executive Chairman, said: “We are delighted to have Devyani join our Board.  She brings a wealth of experience around leadership, culture and talent management and her international expertise will be invaluable as we look to grow the business in the coming years.”

Kevin Davidson, CEO, said: “Securing someone of Devyani’s calibre and stature to the board is testament to where NBB is heading.  Devyani’s appointment, along with the broader leadership changes, cultural refresh and ongoing growth of headcount and talent across our service lines and industry verticals establishes a very strong platform for 2022 and beyond. Exciting times.”

Devyani Vaishampayan, said: “Having known and respected Norman Broadbent for many years, I am thrilled to be part of this exciting new chapter for the business. A great deal has been achieved in recent months and I am very much looking forward to being part of this journey.”  

AIM disclosures:

Devyani Himanshu Vaishampayan (aged 58) does not own shares in the Company and has confirmed that there is no further information to be disclosed pursuant to paragraph (g) of Schedule 2 of the AIM Rules.

A list of Devyani’s current directorships and partnerships together with those held within the last five years is set out below:

Current appointments	Appointments in last 5 years
HR Tech Partnership LtdHR Tech Partnership London LLPThe British Quality Foundation	None

Norman Broadbent plc (LON:NBB) – a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services – has today announced the Group’s unaudited interim results for the six months ended 30 June 2021.

Highlights

· Positive EBITDA for H1 2021

· Improvement in debtor days at end of H1 2021 to 54 (31 Dec 2020: 57 days)

· Reduction of operating expenses by 17% compared to same period last year

· Continued disruption due to the Covid-19 pandemic has impacted NFI, which reduced by 30% to £3.1m, however cost focus from the business resulted in the Company remaining EBITDA positive.

Post Interim period end

· Kevin Davidson appointed as CEO and engaged in accelerated growth plan

· Board strengthened with appointment of Angela Hickmore as non-executive director

· In order to strengthen the Company’s cash position, the Company intends to raise c.£297,000 by way of subscription, supported by the Company’s existing shareholders 

Norman Broadbent Group Executive Chairman, Peter Searle  said:

“These are a solid set of results and it’s pleasing to see positive EBITDA in the first half of 2021 despite the continued disruption due to the Covid-19 pandemic.  We now have the leadership team in place to begin leveraging the full  potential of the Norman Broadbent brand which remains highly respected across executive search and interim markets. .”

Steve Smith, Norman Broadbent Group CFO/COO, added:

“During the first half of 2021, the Group replaced it’s back office systems and simplified it’s structure.  Additionally, leases on our offices in London and Knutsford were renewed at significantly improved terms.  These initiatives have secured capacity for considerable growth whilst also reducing our fixed cost base, enabling increased investment across our fee earning teams “

Norman Broadbent plc (LON:NBB), a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions), has announced that Kevin Davidson will be joining the Board as Chief Executive Officer effective from today.

Kevin has extensive executive level experience in the recruitment sector. Most recently, Kevin was Managing Director of leading specialist executive search and leadership advisory firm, Ducatus Partners, a division of Airswift Holdings Ltd, and prior to that was CEO of Maxwell Drummond International, an international boutique executive search firm, where he spent 15 years in various roles including CEO and COO.  In addition to his leadership and sector expertise, Kevin has a 20 year history of building businesses in the UK and internationally, including managing global operations and setting up new offices internationally.

Peter Searle, Norman Broadbent Executive Chairman, said: “On behalf of the board, I am delighted to welcome Kevin to the company.  His extensive industry expertise and strategic insight will be invaluable as we move into our next phase of growth”

Kevin Davidson said: “I’m delighted to be joining Norman Broadbent at such an exciting point in the firm’s history.  The brand heritage and established reputation for delivery and customer service provide the perfect platform to build from.  I am very much looking forward to being part of this dynamic and successful team and growing the business both domestically and internationally”

AIM disclosures:

Kevin Graeme Davidson (aged 48) does not own shares in the Company and has confirmed that there is no further information to be disclosed pursuant to paragraph (g) of Schedule 2 of the AIM Rules.

A list of Kevin’s current directorships and partnerships together with those held within the last five years is set out below:

Current appointments	Appointments in last 5 years
The Psychology Services Group LtdOperation Eyesight UK Limited	Ducatus Partners LimitedClonmore Executive Search LimitedGB Petroleum Limited

Mr. Davidson was a director of Maxwell Drummond International Limited from January 2007 to April 2016, which was put in to compulsory liquidation on 24 April 2016. The company was wound up on 2 November 2020 and dissolved on 4 February 2021.

Mr. Davidson was also a director of Maxwell Drummond International Group Limited from June 2008 to April 2016, which was put in to compulsory liquidation on 21 April 2016. The liquidation is currently ongoing.

Mr. Davidson was also a director of GB Petroleum Limited from July 2010 which was put in to compulsory liquidation on 6 August 2012. The liquidators received claims of approximately £3.74m from unsecured creditors which was unpaid due to the realisations from the liquidation being insufficient to declare a dividend to the unsecured creditors. The company as wound up on 9 May 2017 and dissolved on 26 August 2017.

Norman Broadbent plc (LON:NBB), a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions), announced to that Angela Hickmore will be joining the Board as Non Executive Director effective from today.

Angela joined Norman Broadbent in 2016, and in October 2020 Angela was appointed Group Managing Director, reporting to Group CEO. Prior to joining NBB, Angela was a Partner at Interim Partners /BrightPool for five years and prior to that was Managing Director at Albemarle Interim Management Plc for 10 years. She is one of the leading experts in the Interim Management market.

The Group is currently in the process to find a new CEO.  Once appointed, Angela will hand them her existing Executive responsibilities

Peter Searle, Norman Broadbent Executive Chairman, said: “On behalf of the Board, I would like to welcome Angela to this new role for her within the Company.  Her industry expertise and strategic insight will be invaluable as we move into next phase of growth.

Angela Hickmore said: “I’m delighted to be joining the Board. The last five years have flown by and I have enjoyed the challenge of diversifying the service offerings and building the team. I look forward to using this experience in a new capacity on the Board”.

Norman Broadbent Plc (LON:NBB), a leading London listed Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions), has announced that Peter Searle has been appointed to its Board as Executive Chairman, effective immediately after the completion of the Annual General Meeting on 25 June 2021. NBB’s current Non-Executive Chairman, Alan Howarth, has informed the Board of his intention to retire from the Board albeit that he is willing to serve his notice period and accordingly, will remain on the Board as Chairman until the completion of the Annual General Meeting on 25 June 2021 and thereafter as a Non-Executive Director until August 2021. The Board would like to extend their thanks and appreciation to Alan for his contribution to the Company during his tenure. The Company will shortly commence a process to appoint a new independent Non-Executive Director and a further announcement will be made in due course.

Peter has over 30 years’ experience in the recruitment sector. In 1999, he was appointed Group Managing Director at Adecco and was responsible for the European and Asia Pacific offices of the professional services companies. After a global reorganisation in 2005, Peter became the Chief Executive of United Kingdom and Ireland at Adecco with additional responsibility for South Africa, India, Australia and New Zealand. In 2006, Peter left to join Spring Group as CEO. He returned in 2009 when Adecco purchased Spring Group and was appointed to the Group Executive Committee. Peter was most recently the CEO of Airswift from 2016 to 2018 and Executive Chairman from 2018 – May 2021. In addition to a number of NED positions, he is Chairman of the Hiring Hub.  Peter has an honours degree in Business and a Post- Grad Diploma in Marketing.

Mike Brennan, Chief Executive Officer said:

“On behalf of the Board and the whole Norman Broadbent family, I would like to welcome Peter to the Company.  Peter has a strong track record within our industry and has enjoyed success both within the private and public markets. He brings a wealth of experience to our Board and we look forward to working with him as we continue to grow and scale the company. As Peter joins us, I would like to take this opportunity to thank Alan Howarth for his help and support whilst serving as our Non-Executive Chairman, particularly during the pandemic”. 

Steve Smith, CFO & COO added:

“Peter’s addition to the Board and his decision to invest in Norman Broadbent is yet another positive sign. Our strategy of building a more balanced Professional Services business not only helped us weather the pandemic, but also stands us in good stead as we push for further growth. Our portfolio of services is becoming increasingly relevant as clients seek to address the challenges presented in the post-pandemic world”.     

On his appointment, Peter Searle said:

“I am delighted to be joining Norman Broadbent at this exciting time. The team worked hard during the pandemic showing considerable commitment to our clients, candidates, and the Company. There are many opportunities ahead of us and I am looking forward to helping Norman Broadbent grow and achieve its true potential”.     

Peter William Courtis Searle (aged 59) owns 3,401,360 shares in the Company, representing 6.16% of the issued share capital.

A list of Peter’s current directorships and partnerships together with those held within the last five years is set out below:

Current appointments:

Appointments within previous 5 years:

Air Energi Newco Limited The Hiring Hub Holdings Limited Orka Technology Group Limited

Air Energi Group Investments Limited Air Energi Group Limited Air Energi Holdings Limited Air Energi investments Limited Air Resources Limited AirSwift Holdings Limited Bellevue Resources Limited Cornwall Street funding LLP Courtis44 Limited Ducatus Partners Limited EP Solar Construction LLP Glotel Holdings Limited Marchfield Holdings Limited My Digital Accounts Limited Netley Funding LLP Singular Resource Solutions Limited Spring Personnel Limited STS (London) Limited Swift (Nigeria) Limited Swift Engineering (Azerbaijan) Limited Swift Technical (Azerbaijan) Limited Swift Technical (Europe) Limited Swift Technical (Operations) Limited Swift Technical (Russia) Limited Swift Technical Group Holdings Limited Swift Technical Group Limited Swift Technical Holdings Limited Swift Worldwide Resources Bidco Limited Swift Worldwide Resources Holdco Limited Swift Worldwide Resources Midco Limited Swift Worldwide Resources UK Corp Limited The Start-Up Loans Company Wally Corner Funding LLP

The board of Norman Broadbent plc (LON:NBB), a leading London listed Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent  Solutions), has announced its final results and annual accounts for the year ended 31st December 2020.

Highlights

·    Year on year NFI decrease of 18% driven by Covid 19 pandemic largely mitigated by quick and decisive cost control measures

·    Positive EBITDA and gross margin increase to 80%

·    15 day improvement in debtors days (to 57 days) assisting with Group liquidity

·    £250,000 Coronavirus Business Interruption Loan secured in December 2020

·    New Invoice Finance Facility active in early 2021 resulted in improved cashflow into the Group

·    25% of 2020 Group NFI generated by internal referrals further evidencing collaborative business culture

·    Further improved NFI mix evidences ongoing creation of a more balanced Group 

A copy of the audited 2020 Annual Report (including the notice of Annual General Meeting) will be sent to shareholders today. The Annual Report will be available on the Company’s website in due course, https://www.normanbroadbent.com/investor-relations

The Company’s AGM will be held at 10am on the 7th Floor, Millbank Tower, 21-24 Millbank, London SW1P 4QP (and by Zoom conference software meeting) on 25th June 2021.

Mike Brennan, Group CEO of Norman Broadbent Group said:

“The Group came into 2020 with good momentum and plans for further growth. We opened a new office in the North of England, relocated to better Central London offices, and were actively seeking to appoint additional team members in both centres. Then, like many businesses, we were impacted by the Covid-19 pandemic.

The early and very decisive actions taken by us, combined with our broader portfolio of services and collaborative and innovative culture, meant we were better placed to respond to these challenges than others. It was not easy, but our team rose to the challenge! 

I would like to thank our shareholders for their continuing support, and our clients for placing their trust in us. I would also like to pay a personal tribute to our team who showed real commitment during the Covid-19 crisis. It is an honour to be their CEO, and I am proud of their achievements, much of which is down to their hard work, loyalty, and dedication.”

CEO’s Review

RESULTS FOR THE FINANCIAL YEAR

The table below summarises the results of the Group:

	Year ended	Year ended
	31-Dec	31-Dec
	2020	2019
	£000’s	£000’s
CONTINUING OPERATIONS
REVENUE	7,816	11,486
Cost of sales	(1,530)	(3,879)
NET FEE INCOME (GROSS PROFIT)	6,286	7,607
Operating expenses	(6,217)	(7,369)
EBITDA	69	238
Depreciation and amortisation	(222)	(93)
GROUP OPERATING PROFIT / (LOSS)	(153)	145
Net finance cost	(40)	(61)
PROFIT / (LOSS) BEFORE TAX	(193)	84
Income tax	–	–
PROFIT / (LOSS) AFTER TAX	(193)	84

Strategic review

Since my appointment as Group CEO, our team has worked hard to build the ‘new’ Norman Broadbent Group. Our approach – to build a complementary, relevant, and synergistic range of services – proved to be of significant benefit during the pandemic as the needs of clients shifted during unprecedented times. As the need for our Search-driven service slowed during the pandemic for example, calls for Interim Management expertise grew as clients wanted short-term immediate solutions to previously unencountered business problems.  Our aim has always been to build a ‘hedged’ and balanced business which could cater to client needs at different points in their evolution or the economic cycle. This portfolio approach coupled with our collegiate team-based approach enabled us to trade through the pandemic.    

2020 trading and business review

In 2020, as a direct result of the Covid 19 Pandemic, Group turnover reduced to £7,816,000 (2019: £11,486,000) whilst overall net revenues after associate and interim costs in the continuing businesses reduced to £6,286,000 (2019: £7,607,000). Although we continued to invest in innovative entrepreneurial talent, a focus on cost management ensured that operating expenses reduced significantly to £6,217,000 (2019: £7,369,000).  EBITDA has reduced from £238,000 in 2019 to £69,000 in 2020.

In October 2020, the Group agreed to acquire the outstanding non controlling interest of 25% in Norman Broadbent Interim Management Ltd for a combination of cash and Norman Broadbent PLC shares.  This formed part of a restructuring exercise which has now combined all existing Norman Broadbent trading subsidiaries into the Norman Broadbent Executive Search business.  This has allowed a simplified and more cost effective business structure.  Additionally, the business has reorganised to operate under a number of client focused sector and functional based hubs. 

Financial position

As at 31 December 2020, consolidated net assets were £1,106,000 (2019: £1,365,000) with net current liabilities of (£504,000) (2019: Net Current Liabilities of (£219,000). Group cash amounted to £367,000 (2019: £432,000).

Net cash inflow from operations in 2020 was £515,000 (2019 outflow: £182,000). Net cash outflow from financing activities amounted to £492,000 (2019: inflow £21,000).

At 31 December 2020 the Group had £577,000 (2019: £950,000) of funds drawn down against the revolving invoice discounting facility against UK trade receivables of £1,449,000 (2019: £2,733,000).

The Directors continue to monitor and manage the Group’s working capital carefully.

Covid-19

As concerns about Covid-19 began to emerge in March, we moved swiftly to ensure we were appropriately positioned to deal with a period of extended uncertainty. Staffing changes were made, and a small number of team members were furloughed or released from their contracts. Our remaining colleagues moved quickly to remote working.

As the business embraced technology to assist in remote working and continued candidate and client interaction, trading continued uninterrupted as staff seamlessly adapted to the new working environment.

This not only highlights the agility of the Norman Broadbent team, but also evidences the strength of our 40-year old brand and how the Group’s more diverse portfolio of services are particularly relevant in today’s markets. Building on those strengths and our investment in digital marketing, both Interim and Solutions have seen continued business opportunities from existing and new clients.

With a slowdown in the market (particularly in Search) there was some reduction in revenues. These however were largely offset by the sensible and prudent cost measures taken. Additional emphasis was placed on cash collections and we subsequently saw a reduction in debtor days during 2020. This, combined with modest positive EBITDA, helped protect cashflow and the Group’s cash position.

Arrangements for AGM

The AGM will take place on June 25^th, 2021 at 10 AM.  In light of Covid-19, shareholder attendance at the meeting will be primarily via Zoom conferencing software. Shareholders attending via Zoom who wish to vote on the AGM’s resolutions will need to do so by proxy. Full details on how to gain access to the meeting and vote by proxy are provided in the notes to the notice of AGM set out in the Notice of AGM.

Board Changes

Alan Howarth joined the Board as Non Executive Chair on 1^st August 2020 replacing Brian Stephens who resigned from the Board on 26^th August 2020.  The Board would like to thank Brian for his considerable contributions over the past 10 years and we wish him well for the future.

Summary

Having posted a positive set of 2019 Group results, we came into 2020 with good momentum and plans for further growth. We opened a new office in the North of England, relocated to better Central London offices, and were actively seeking to appoint additional team members in both centres. Then, we, like many businesses, were impacted by the Covid-19 pandemic.

The early and decisive actions taken by us, combined with our broader portfolio of services have continued into 2021 and leave us better placed to respond to these challenges than many. Similarly, our collaborative and innovative culture will stand us in good stead when compared to more traditional and siloed competitors.

I and the Board would like to thank our shareholders for their continuing support, and our clients for placing their trust in us. I would also like to pay tribute to our team who have made considerable sacrifices during the Covid-19 crisis. It is an honour to be their CEO, and I am proud of their achievements, much of which is down to their hard work, dedication, and commitment.

Mike Brennan

Group Chief Executive

21 May 2020

 

Strategic Report

THE BUSINESS MODEL

The Norman Broadbent Group is a leading Professional Services firm focussing on Talent Acquisition & Advisory Services. Since our formation nearly 40 years ago we have developed a range of complementary services consisting of Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting, and Solutions. With a range of services designed to meet customer needs at different stages in their growth or the economic cycle, our innovative and flexible approach enables us to help clients in a creative and bespoke way. By operating within sector ‘hubs’ as opposed to siloed service lines, we are able to service clients better and more collaboratively. As a result of this collaboration, c.25% of 2020 NFI was generated via internal cross-referrals.

STRATEGY AND OBJECTIVES

The Group’s strategy is to further develop, strengthen and scale our complementary portfolio of Talent Acquisition & Advisory services.  This could be achieved via further selective hires, new partnerships and greater innovation. Ultimately our aim is to help clients make better informed, more effective buying decisions to ensure successful outcomes.

RESULTS FOR THE FINANCIAL YEAR

Group revenue from continued operations reduced in the year by 32% to £7,816,000 (2019: £11,486,000), with gross profit of £6,286,000 (2019: £7,607,000).

Operating expenditure decreased to £6,439,000 (2019: £7,462,000).

The Group EBITDA has reduced to £69,000 in 2020, (2019 EBITDA : £238,000) with an operating loss from continued operations in 2020 of £153,000 (2019 operating profit £145,000) and a retained loss in 2020 of £193,000 (2019: retained profit £84,000).

CASH FLOW AND BALANCE SHEET

Net cash inflow from operations in 2020 was £515,000 (2019: net cash outflow from operations £182,000). Net trade receivables at the year-end were £1,449,000 (2019: £2,733,000).

Net cash outflow from financing activities was £492,000 (2019: net cash inflow of £21,000). At 31 December 2020, the Group had £577,000 (2019: £950,000) of funds drawn down against the revolving invoice discounting facility against UK trade receivables of £1,449,000 (2019: £2,733,000).

EARNINGS PER SHARE

The retained loss for 2020 has resulted in a reported loss per share of 0.59 pence (2019: profit per share 0.04 pence).

GOING CONCERN

In light of the current financial position of the Group and on consideration of the business’ forecasts and projections, taking account of possible changes in trading performance, the Directors have a reasonable expectation that the Group has adequate available resources to continue as a going concern for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing their annual report and financial statements.

DIRECTORS’ DUTIES

The Directors of the Company, as those of all UK companies must act in accordance with a set of general duties.  These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows :

‘A Director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to :

·    the likely consequences of any decisions in the long-term;

·    the interests of the company’s employees;

·    the need to foster the company’s business relationships with suppliers, clients and others;

·    the impact of the company’s operations on the community and environment;

·    the desirability of the company maintaining a reputation for high standards of business conduct, and

·    the need to act fairly as between shareholders of the Company’

As part of their induction, a Director is briefed on their duties and they can access professional advice on these, from the Company Secretary, Nomad, or if they judge it necessary, from an independent advisor.  The following paragraphs summarise how the Directors fulfil their duties:

MONITORING, RISK AND KPIs

The Directors have a responsibility for identifying risks facing each of the businesses and for putting in place procedures to mitigate and monitor risks. Our Board meetings incorporate, amongst other agenda items, a review of monthly management accounts, operational and financial KPIs, major issues and monthly update and review of a risk register that addresses the risks facing the business.

The most important KPIs used in monitoring the business are set out in the following table:

Key performance indicators	2020		2019
NFI	£6,286,000		£7,607,000
EBITDA	£69,000		£238,000
Debtor days	57 days		72 days

The Directors monitor revenue against annual targets, which are adjusted each year to ensure the Group remains on target to achieve its strategic growth plan. Further, given the significant restructuring and refocus of the group in the recent past, the Directors expect Group revenues and operating profits to improve over the next few years.

The principal risks faced by the Group in the current economic climate are considered to be financial, business environment and people related.

Financial – The main financial risks arising from the Group’s operations are the adequacy of working capital, interest rate, liquidity and credit risk. These are monitored regularly by the Board and are disclosed further in notes 2 and 17 of the financial statements.

The business is in the later stages of the turnaround process and is budgeted to be self-funding. In turnarounds there is always a risk that the process could take longer than anticipated which could lead to short term working capital pressures. In the event of such an occurrence the Company anticipates working closely with its supportive shareholders to access short term working capital funding.

Business Environment – Demand for services is affected by global and UK specific economic conditions and the level of economic activity in the regions and industries in which the Group operates. When conditions in the economy deteriorate or economic activity slows, many companies hire fewer permanent employees or rely on internal human resource departments to recruit staff.

The Group attempts to mitigate this risk by operating across various diverse sectors where demand for such services is stronger.

Covid-19 Pandemic – on 23 March 2020 the UK economy was placed in a state of lockdown as part of the Government’s response to the emerging pandemic. The Group reacted by making staffing changes with a small number of individuals furloughed or released from their contracts with the remaining team members moving to remote working. As the lockdown was lifted, the Group’s offices have reopened with the majority of staff continuing to work remotely.

The Group was successful in securing a £250,000 CBILS loan and also rearranged a more favourable Invoice Finance Facility in early 2021.  Combined with improved collections and debtor days, these facilities have helped to improve the Group’s liquidity.

People – The Group’s most vital resource remains its employees and the Directors remain committed to retaining and recruiting quality staff who share the Group’s culture and values. In a people intensive business, the resignation of key staff, which could lead to them taking clients, candidates and colleagues to another employer, is a significant risk. The Group aims to mitigate this risk by offering competitive remuneration structures, whilst also insisting on employment contracts that contain restrictive covenants that limit a leaver’s ability to approach existing clients, candidates and employees.

CAUTIONARY STATEMENT

The Group’s Strategic Report has been prepared solely to provide additional information to shareholders to assess the Company’s strategies and the potential for those strategies to succeed.

The Strategic Report contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

The Directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006. The Strategic Report has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Norman Broadbent plc and its subsidiary undertakings when viewed as a whole.

Mike Brennan                                               Steve Smith

Director                                                          Director

21 May 2020                                                  21 May 2020

Norman Broadbent plc (LON:NBB) – a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services – has provided the following unaudited trading update relating to the twelve months ended 31 December 2020.

Following the unprecedented events of 2020, the Board is pleased to provide the following trading update:

Highlights and Financial Information:

·    Management moved early and decisively at start of pandemic

·    Group Net Fee Income decreased  YoY by 18% to £6.2m (2019: £7.6m)

·    Gross margin percentage increased to 79% (2019: 66%)

·    Swift cost control measures at onset of pandemic largely offset decrease in Net Fee Income leading to positive Group EBITDA for the full year 2020

·    Improved Group liquidity following significant improvement in Debtor Days

·    Secured a £250,000 six-year term Coronavirus Business Interruption Loan

·    A new £1.5m Invoice Finance Facility to become active in early 2021

·    Pre-audit work commenced – Group anticipates releasing the full results for FY2020 in April 2021

·    Strategic hires made across ‘thrive’ sectors and internal promotions to new leadership roles

·    Established digital marketing and client engagement initiatives came into their own in 2020.  

Mike Brennan, Group CEO of Norman Broadbent, commented:

“2020 was unprecedented yet, despite these unparalleled times, the Norman Broadbent team pulled through and performed. The strategy of building a broader portfolio of services – one we have pursued since I joined the business – stood us in good stead in the run up to, and during, the pandemic. Our broader, more relevant, portfolio of services has enabled us to help clients as they faced their own challenges in 2020. Although our objectives remain the same, the pandemic has amplified them. Put simply, our aim is to help clients manage and successfully drive change, mitigate risk, grow, and succeed.

Notwithstanding the uncertain economic environment, our goal this year is to strive to grow NFI back towards 2019 levels whilst continuing to build upon our successes in 2020 in carefully managing our cost base.

After a tough 2020, I would again like to thank my colleagues for their hard work, innovation and commitment, our clients for placing their continued trust in us, and our supportive shareholders.”

Steve Smith, Group CFO/COO of Norman Broadbent, said

“Under the circumstances these are good results reflecting well on our team and strategy. As the pandemic forced businesses to rethink strategy, pivot and change, our clients have increasingly seen us as a problem-solving partner offering a bespoke mix of progressive high‐quality Search, Interim Management, Research & Insight, Assessment & Development solutions. Our collaborative innovative culture coupled with the trusted Norman Broadbent brand has made us proven business partner, especially during these difficult times.

Looking ahead, we continue to seek growth opportunities and are actively pursuing M&A opportunities, long-term partnerships, and strategic ‘tuck-ins’.”