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(Sharecast News) - Norman Broadbent reported a return to profit and its strongest performance in over a decade for 2025 on Wednesday, as higher fee income and improved operating leverage drove a sharp increase in earnings.
The AIM-traded executive search and interim management firm said net fee income rose 32% to 12.3m, while underlying EBITDA increased more than fourfold to 1.3m from 0.3m, with margin expanding to 11% from 3%.
It reported a profit for the year of 0.6m, compared with a loss of 0.2m in 2024.
The improvement reflected a 0.8m increase in profit before tax, supported by productivity gains and cost discipline.
Operating cash flow remained strong, with 1.9m generated during the year, while net cash at the year end stood at 1.5m, up from 0.1m a year earlier, following full repayment of the group's CBILS loan.
The company said the results marked the completion of its turnaround phase and the achievement of its medium-term underlying EBITDA target, set four years ago, despite a challenging macroeconomic backdrop.
Looking ahead, Norman Broadbent said it had continued to invest in growth, including increasing headcount in the first quarter and completing the acquisition of Society Limited, strengthening its position in aligned sectors.
The group also highlighted a strong finish to 2025, with momentum carrying into the current financial year, although it cautioned that trading conditions remain uncertain.
"With the 2025 results we have both completed the turnaround phase of our strategy and delivered on our medium-term underlying EBITDA target of 1.25m," said chief executive Kevin Davidson.
"This performance was achieved against a backdrop of macroeconomic uncertainty and I am grateful for the dedication of the entire team in closing out a successful 2025.
"In a market where the outlook remains uncertain, particularly with the backdrop of geopolitical uncertainty in the Middle East, we will continue to focus on controlling what we can control and on building our business in line with our ambitious growth strategy.
"Consistent with this plan, we made further investment in headcount in the first quarter and we were also delighted to complete the acquisition of Society Limited, strengthening our presence in sectors that are naturally aligned with our long-term growth plans.
"After an exceptionally strong fourth quarter to close 2025, the team is also focused on building the pipeline to achieve our objectives for the current financial year.
"Whilst progress in this market environment will be non-linear, we have a strong balance sheet, a business that has proven itself in tough markets and a strategic plan that is delivering results.
"We have transformed the business financially, restored our reputation as a trusted partner at the top end of executive search and strengthened the Norman Broadbent operating platform.
"As we drive the business forward through the next stage of our growth plan, our future success will continue to be based on our resolute focus on disciplined investment to drive NFI growth and on operational efficiency.
"This will be underpinned, as always, by our values-based culture and an unwavering commitment to client satisfaction."
At 0936 GMT, shares in Norman Broadbent were up 0.02% at 235.05p.
Reporting by Josh White for Sharecast.com.
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