Norman Broadbent PLC returns to profit and focuses on cash collection

(), the recruiter and management services group, returned to profit in 2019, though it said business since has been slowed by the effects of the coronavirus (COVID-19) pandemic.

The AIM-listed business reported that continuing revenues increased by 22% to £11.5mln in the year to December 31, 2019, while the group saw an £800,000 swing to a pre-tax profit of £84,000 from a loss of £741,000.

Both the interim management and Solutions arms of the business increased revenues over the year by more than 50%, Norman Broadbent said.

Mike Brennan, chief executive, added: “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.”

Search has seen the biggest slowdown caused by the pandemic, Brennan said, but the reduction in revenues has been offset by cost measures taken.

“Additional emphasis has been placed on cash collections,” he added and this has led to a reduction in debtor days during 2020.

“This, combined with modest positive EBITDA in March, April, and May, helped protect cashflow and the Group’s cash position,” Brennan said.

“Building on those strengths and our investment in digital marketing, both Interim and Solutions have seen continued business opportunities from existing and new clients.”