Norman Broadbent PLC Trading Update (8250P)

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RNS Number : 8250P

Norman Broadbent PLC

13 February 2019

Norman Broadbent plc

("Norman Broadbent" "NBB" "the Company" or "the Group")

Trading Update

The Board (the "Board") of Norman Broadbent (AIM: NBB) today provides an unaudited trading update ahead of its annual results in respect of the year ended 31 December 2018.

Highlights

   --     Significant progress towards a return to profitability 

-- Group revenue increased by GBP2.6m (+40%) to GBP9.2m our highest annual revenue in over 10 years

   --     Group Net Fee Income ("NFI") increased by GBP1.6m (+32%) to GBP6.6m 

-- 2018 Group operating performance (loss of GBP0.6m) a significant improvement on 2017 (loss of GBP1.6m)

-- 2018 Group operating performance includes a one off increase in the provision for office dilapidations of GBP0.1m relating to our former offices

   --     Loss before tax reduced by GBP0.9m (-55%) to a 2018 loss before tax of GBP0.7m 
   --     Interim Management NFI increased by GBP0.8m (+109%) to GBP1.5m 
   --     Executive Search NFI increased by GBP0.7m (+24%) to GBP3.7m 
   --     Solutions NFI increased by GBP0.4m (+45%) to GBP1.2m 
   --     Further improved NFI mix evidences ongoing creation of a more balanced Group 

Mike Brennan, CEO of Norman Broadbent, said:

"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.

At EBITDA level, we are confident that we will continue seeing losses reduce as NFI continues to rise in 2019. 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.

With the Group delivering a significant set of results, I would 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."

For further information, please contact:

Norman Broadbent plc

Mike Brennan/Will Gerrand 020 7484 0000

WH Ireland Limited

Adrian Hadden/ Jessica Cave 020 7220 1666

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

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February 13, 2019 02:00 ET (07:00 GMT)