LONDON (Alliance News) - Norman Broadbent Tuesday said its first-half pretax loss widened despite a small increase in revenue, as a result of moves to streamline the group through business disposals.
In a statement, the executive search company said it made a GBP1.0 million pretax loss in the six months ended June 30, compared with GBP291,000 loss in the corresponding period last year.
Revenue from continuing operations increased to GBP3.8 million from GBP3.7 million. UK executive search revenue declined by 14% to GBP2.5 million, but with increased profit based on high margin coupled with reduced costs, Norman Broadbent said.
However, the company's operating loss widened to GBP395,000 from GBP275,000, as operating expenses increased to GBP4.1 million from GBP3.9 million. Norman Broadbent said this was due to continued investment in its start-up businesses AGP and Social Media Search.
Pretax profit also was dented by GBP559,000 of exceptional items, arising from the disposal of 51% subsidiary Norman Broadbent SPRL, the sale of its 20% stake in NBS Norman Broadbent SA, and the write off of investment in Norman Broadbent SAS.
"In the first six months of 2014, we continued to invest in growing our enhanced suite of service offerings alongside focusing on improving profit margin in our core executive search business," Chairman Pierce Casey said in a statement.
"I am pleased to report that since the period end UK executive search / leadership consulting, executive interim, RPO (within AGP) and social media search are all trading and trending well, whilst we are dealing with a somewhat disappointing performance from the traditional contingent offering of AGP," Casey added.
Norman Broadbent also said that James Webber, its chief financial officer and chief operating officer, has been appointed to the board.
Norman Broadbent shares were Tuesday quoted down 9.8% at 23.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Norman Broadb (NBB)