Norman Broadb Regulatory News (NBB)

28 September 2020

Norman Broadbent plc

("Norman Broadbent" "NBB" "the Company" or "the Group")

Interim Results

The Board (the "Board") of Norman Broadbent plc (AIM: NBB) - a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services - is pleased to announce the Group's unaudited interim results for the six months ended 30 June 2020

Highlights

· Positive EBITDA of £11,000

· NFI decline of just 5.7% despite the disruption arising from the Covid-19 pandemic

· Interim Management and Solutions saw positive NFI increases from H1 2019 of +48% and +22% respectively

· Net cash inflow from operations of £629,000

· Debtor days at end of H1 2020 was 48 days (Dec 2019 - 72 days)

· All external loans (excluding Bibby Working Capital Invoicing Discounting facility) fully repaid

· Actively seeking growth opportunities via key appointments, M&A initiatives, and partnerships/strategic 'tuck-ins'

Mike Brennan, Norman Broadbent Group CEO, said:

"I am pleased to report that the first six months of 2020 showed positive EBITDA, and, despite Covid-19, we saw only a minimal decline in NFI of 5.7%. This remarkable achievement is down to the dedication of my colleagues and our strategy of building an innovative, diversified, and agile Group. These factors, coupled with our willingness to take difficult decisions quickly and early on in the pandemic, meant we were well placed to respond to market challenges and uncertainties.

We have proven our strategy is working, and our leadership team has the bandwidth to build the Group further. With this in mind, and despite these challenging times, we are actively seeking growth opportunities in the form of key strategic appointments to the Group, M&A initiatives, and partnerships/strategic 'tuck-ins'.

I and the Board would like to thank our supportive shareholders and clients for continuing to place their trust in us. I must also pay tribute to my colleagues - I am justifiably proud of them and their performance. Our continued positive momentum during this most difficult of times is down to their hard work, dedication, and commitment."

Steve Smith, Norman Broadbent Group CFO/COO, added:

"With the Group posting positive EBITDA for H1 2020, and with revenues only marginally down, we have demonstrated Norman Broadbent's resilience and relevance. Culturally and operationally we are no longer a traditional, siloed, pure-play executive search business but something much broader, more progressive, and relevant in today's market. Increasingly our clients see us for what we now are - a problem-solving business partner offering bespoke solutions incorporating Consulting, Interim, Research & Insight, and high‐quality fully retained Search Solutions."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further information please contact:

Norman Broadbent plc

Mike Brennan/Steve Smith 020 7484 0000

WH Ireland Limited

Adrian Hadden/Darshan Patel

020 7220 1666

About Norman Broadbent plc:

Norman Broadbent plc (AIM: NBB) is a leading Professional Services firm focusing on Talent Acquisition & Advisory Services. Since its formation nearly 40 years ago, The Norman Broadbent Group has developed a portfolio of complementary services centered on Executive Search Solutions, Senior Interim Management, Research & Insight, and Leadership Consulting & Assessment. Unusually, Norman Broadbent is one of the few businesses of its type offering clients integrated Search and Interim Management Solutions. This innovative approach gives clients immediate access to business-critical executive-level Talent, meeting both short and longer-term needs.

CEO Review:

In the six months to 30 June 2020, the Group reported positive EBITDA of £11,000 (2019: £111k) on turnover of £4,430,000 (2019: £5,260,000). We are pleased with this result which has been achieved during a period of significant disruption due to the Covid-19 pandemic.

The Group has changed from a predominantly single service traditional executive search business to a more balanced service/revenue business providing clients with an integrated range of relevant, complementary, progressive, and sophisticated offerings. This not only helps us serve our clients better, but also enables us to differentiate ourselves in what is becoming an increasingly transactional and commoditised traditional executive search market.

Our aim is to continue strategically scaling all business units. As we continue to grow, we will maintain our focus on innovation, client-service, enhancing our established brand, the growth of high-quality recurring revenues, and continued profitability. Despite the pandemic, we have not been deflected from pursuing our long-term strategy. This has seen us transition the Group to a business which is structured around specific industry and functional hubs and away from individual teams focussing on their own siloed service line. This strong client focus benefits our customers and, in turn, the company as evidenced by the record levels of internal referrals of work. By making this change we are no longer a traditional, siloed, pure-play executive search business but something much broader, more progressive, more integrated, and relevant in today's market. Increasingly our clients see us for what we now are - a problem-solving business partner offering bespoke solutions incorporating Consulting, Interim, Research & Insight, and high‐quality fully retained Search Solutions.

Summarised Financial Results:

The table below summarises the results for the Group.

Financial Position

Equity shareholders' funds were £1,322,000 as at 30 June 2020 (£1,365,000 at 31 December 2019), with net current liabilities of £254,000 (net current liabilities £219,000 at 31 December 2019). Cash and cash equivalents at 30 June 2020 amounted to £399,000 (£432,000 at 31 December 2019, £258,000 at 30 June 2019).

Net cash inflow from operations was £629,000 driven primarily by improved trade debt collections with debtor days improving to 48 days (72 days - December 2019) (Net cash outflow from operations was £182,000 at 31 December 2019) and net cash outflow from financing activities amounted to £621,000 driven entirely by pay down of debt. (£21,000 inflow at 31 December 2019).

Outlook

These positive results - generated during a difficult period - evidence our relevance, resilience, and progression, and we look forward to updating the market on FY2020 trading as early as possible in 2021. I would like to thank my colleagues for their hard work, innovation and commitment, our clients for placing their continued trust in us, and of course our supportive shareholders.

Michael J. Brennan

Group Chief Executive Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six-month period ended 30 June 2020

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six-month period ended 30 June 2020

CONSOLIDATED STATEMENT OF CASH FLOW

For the six-month period ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

1.1 Basis of preparation

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2019, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those statements was unqualified.

The interim financial information for the six months ended 30 June 2020, has been prepared in accordance with the AIM Rules for Companies. The Group has not elected to apply IAS 34 'Interim Financial Reporting'. The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 31 December 2020 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2019. The interim financial statements have not been audited.

1.2 Basis of consolidation and business combinations

Group financial statements consolidate those of the Company and of the following subsidiary undertakings:

* 100 per cent of the issued share capital of this company is owned by Norman Broadbent Overseas Ltd.

2. copies of the unaudited interim report

Copies of this report are available on request from the Company's registered office at Millbank Tower, 21-24 Millbank, London SW1P 4QP and are also available on the Company's website at www.normanbroadbent.com.

3. SEGMENTAL ANALYSIS

Management has determined the operating segments based on the reports reviewed regularly by the Board for use in deciding how to allocate resources and in assessing performance. The Board considers Group operations from both a class of business and geographic perspective.

Each class of business derives its revenues from the supply of a particular recruitment related service, from retained executive search through to executive assessment and coaching. Business segment results are reviewed primarily to operating profit level, which includes employee costs, marketing, office and accommodation costs and appropriate recharges for management time.

Group revenues are primarily driven from UK operations, however when revenue is derived from overseas business the results are presented to the Board by geographic region to identify potential areas for growth or those posing potential risks to the Group.

i) Class of Business:

The analysis by class of business of the Group's turnover and profit before taxation is set out below:

ii) Revenue and gross profit by geography:

4. earnings PER ORDINARY SHARE

i) Basic earnings per share:

This is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period:

ii) Diluted earnings per share:

This is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has issued share options which are potentially dilutive. A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to the outstanding options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

iii) Adjusted earnings per share

Adjusted earnings per share has also been calculated in addition to the basic and diluted earnings per share and is based on earnings adjusted to eliminate charges for share based payments. It has been calculated to allow shareholders to gain a clearer understanding of the trading performance of the Group.

5. PROVISIONS

6. RELATED PARTY TRANSACTIONS

Brian Stephens & Company Limited invoiced the Group for the directors' fees and corporate finance services of B Stephens (£8,000), B Stephens is a director of Brian Stephens & Company Limited.

All related party expenditure took place via "arms-length" transactions.

The payables to related parties arise from purchase transactions and are due one month after date of purchase. The payables bear no interest.