Norman Broadbent (AIM:NBB), the AIM-listed executive search and interim management firm, reported net fee income of £5.3m for the six months ended 30 June, down from £6m in the same period last year, which had marked a record first half.
Second-quarter net fee income of £3.1m marked a recovery from £2.2m in the first quarter, as the business rebuilt its pipeline following a record fourth quarter in 2025.
Underlying EBITDA swung to a loss of £0.2m, against a £0.8m profit in the prior-year period, reflecting investment in headcount, which rose to 71 staff at the period end from 62 at the end of December, including five joining through the Society acquisition.
Net debt stood at £0.8m at 30 June, compared with net cash of £0.2m a year earlier, driven by a slower January and the timing of FY25 bonus payments.
"We are not immune to the prevailing market environment, which remains tough, but our improving NFI momentum and current robust pipeline give us confidence in a strong NFI performance in the second half of the year," said Kevin Davidson, chief executive.
The Board expects Underlying EBITDA to improve in the second half, alongside a reduction in net debt as bonus-related cash outflows ease.
News Intelligence what this means for the company
Norman Broadbent's first-half net fee income fell 12% to £5.3m from a record £6m a year earlier, but second-quarter momentum (£3.1m vs £2.2m in Q1) signals recovery. The swing to a £0.2m EBITDA loss from a £0.8m profit reflects deliberate headcount investment—staff rose to 71 from 62—and the company has shifted from net cash of £0.2m to net debt of £0.8m, driven by slower January trading and bonus timing. Management expects second-half improvement as bonus outflows ease and the pipeline strengthens.
The EBITDA loss is a near-term cost of growth, not a sign of distress: the company is investing ahead of demand recovery and the Q2 rebound in fee income suggests the pipeline is rebuilding. However, the shift to net debt and the 12% year-on-year revenue decline underscore exposure to the tough industrial and manufacturing labour market the company serves; recovery depends on execution in H2 and sustained client demand.
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