Record FY25 numbers and a completed turnaround
Norman Broadbent has posted its strongest results in over a decade. Net Fee Income (NFI – essentially gross profit) rose 32% to £12.3 million, underlying EBITDA (earnings before interest, tax, depreciation and amortisation, excluding share-based payments and restructuring) jumped to £1.3 million with an 11% margin, and the Group swung to a £0.6 million profit before tax.
Management says this completes the four-year turnaround plan started in late 2021. It’s impressive given the recruitment sector’s choppy market through 2025.
| Key numbers (FY 2025) | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £15.1m | £10.9m | +39% |
| Net Fee Income (NFI) | £12.3m | £9.3m | +32% |
| Underlying EBITDA | £1.3m | £0.3m | +333% |
| EBITDA margin | 11% | 3% | – |
| Profit before tax | £0.6m | £(0.2)m | +£0.8m |
| Net cash (excluding leases) | £1.5m | £0.1m | +£1.4m |
| Operating cash flow | £1.9m | £0.0m | – |
| Basic EPS (restated) | 31.9p | (8.5)p | – |
| Adjusted basic EPS (excl. share-based) | 43.5p | (5.2)p | – |
What drove the step-up in performance
The uplift came from a higher quality mix of senior mandates, strong delivery, and tight cost control. Productivity improvements showed up in margins, with EBITDA rising fourfold despite a modest increase in fee-earning headcount (net +7%). That’s classic operating leverage – more NFI dropping through to profit as the platform scales.
Revenue by service line shows the model’s engine room is still executive search, with useful diversification:
- Search: £10.72 million
- Interim Management: £4.25 million
- Leadership Consulting: £0.17 million
Geographically, the UK delivered £9.88 million and the rest of the world £5.26 million, helped by growing activity in the US and Middle East. Client feedback looks strong too: 98% of respondents said they would work with the firm again, with 94% rating post-shortlist support as very good or excellent.
Cash, balance sheet and working capital discipline
The cash story is as encouraging as the P&L. Net cash finished the year at £1.5 million, a £1.4 million swing from 2024, even after fully repaying the CBILS loan in April 2025. Operating cash generation was £1.9 million, debtor days held steady at 42, and the invoice discounting facility (capped at £2.0 million) was undrawn at year end.
Net assets rose to £2.1 million (2024: £1.3 million). Lease liabilities are modest at £178,000. Overall, this is a much sturdier platform than four years ago.
Strategy for FY26: invest to grow, with discipline
Management is moving from turnaround to growth. The FY26 priorities are clear:
- Increase fee-earning capacity by at least 20% while maintaining quality and productivity.
- Push on internationally, with the US and Middle East as priority markets.
- Broaden Leadership Consulting and Advisory – productising services such as leadership development, onboarding coaching and board effectiveness reviews.
- Pursue selective M&A where it is strategically and financially attractive.
Post year end, the Group acquired Society Limited, adding five staff and deepening capability in third sector board-level appointments and Travel & Hospitality. It will remain under the Society brand but be integrated operationally. The Board calls this consistent with a disciplined, value-accretive approach.
Also after year end, the Company proposed a capital reorganisation to eliminate the historic P&L deficit and create distributable reserves. If approved by shareholders and the Court, it would permit dividends in the future, though there are no immediate plans to resume payouts.
Risks and watch-outs
The company is frank that the outlook remains uncertain and progress may be non-linear. The geopolitical backdrop in the Middle East is specifically cited as a risk. The invoice discounting facility is uncommitted and subject to three months’ notice, although the Board’s going concern review indicates adequate liquidity even in a severe downside, supported by working capital levers and the potential to access alternative financing.
On execution, the key watch-outs are integration of Society, hiring to the 20% target without diluting productivity, and converting the growing international presence into sustained fees and cash.
My take: a cleaner, cash-generative platform with runway
This is a high-quality set of numbers. The business has doubled NFI in four years to £12.3 million, delivered £1.3 million of underlying EBITDA at an 11% margin, and flipped the balance sheet to £1.5 million of net cash. Cash conversion and debtor discipline look solid, and the CBILS repayment removes a legacy item.
On the softer side, brand rebuilding and client satisfaction scores matter in executive search, and the company appears to be executing well at the senior end of the market. The step-up in international activity is encouraging – especially with first Partner hires in the UAE and US – but investors will want to see that translate into sustained, higher-margin NFI.
The capital reorganisation could open the door to dividends in time, though management is rightly prioritising growth investment. In the near term, the share consolidation means EPS optics look punchy – basic EPS of 31.9p and adjusted basic EPS of 43.5p – but the real focus should be on NFI growth, margin expansion and cash generation.
What to track next
- NFI trajectory and EBITDA margin versus the 11% delivered in FY25.
- Cash conversion and debtor days staying near 42 days.
- Fee-earning headcount growth and productivity as FY26 hiring ramps.
- Society integration benefits and cross-selling impact.
- International wins in the US and Middle East.
- Outcome of the capital reorganisation and any future dividend signals.
Useful links and logistics
The investor presentation and Q&A is scheduled for 11am today and is open to all shareholders. You can register here: Investor Meet Company – Norman Broadbent.
Company information and the announcement are available at www.normanbroadbent.com.
Bottom line
Norman Broadbent exits FY25 as a profitable, cash-generative search and interim firm with a strengthening brand and a clearer growth plan. The cyclical backdrop is still tricky, but the operating leverage on show – and the discipline around cash – give management room to keep investing. If they hit the FY26 hiring and international ambitions without losing productivity, the upgraded platform should keep compounding.
