Q2 2026 Norman Broadbent PLC Earnings Call

September 16, 2026

Speaker #1: After the presentation, throughout this recorded presentation, investors will be in a Q&A mode: questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type your questions and press send.

Operator: The investor presentation. Throughout this recorded presentation, investors will be in a listening mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to Kevin Davidson, CEO. Good afternoon, sir.

Speaker #1: The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it's appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll. I would now like to hand you over to Kevin Davison, CEO. Good afternoon, sir.

Speaker #2: Thank you, Lily, and good afternoon, everybody. We're delighted to be presenting Norman Broadbent's financial year 2026 interim results to you today. With you from Norman Broadbent, you have myself, Kevin Davidson.

Kevin Davidson: Thank you, Lily, and good afternoon, everybody. We are delighted to be presenting Norman Broadbent's financial year 2026 interim results to you today. With you from Norman Broadbent, you have myself, Kevin Davidson, I have been the CEO since September 2021, and my colleague, Mehr Malik, who joined as CFO in early 2023. We have been busy on a number of fronts, and we are delighted to be updating you on our progress in the H1 of 2026. The key headlines from today are, following our record-breaking 2025 results, we had a slower start to 2026 in terms of net fee income, but momentum was firmly reestablished in Q2, and this has been carried forward so far into the H2 of the year.

Speaker #2: I have been the CEO since September 2021, and my colleague Meher Malik, who joined as CFO in early 2023, and I have been busy on a number of fronts. We are delighted to be updating you on our progress in the first half of 2026.

Speaker #2: The key headlines from today are: Following our record-breaking 2025 results, we had a slower start to 2026 in terms of net fee income. But momentum was firmly reestablished in Q2.

Speaker #2: And this has been carried forward so far into the second half of the year. As per the plan, we have been investing in growth in our core UK-based executive search offering, whilst also building capability and capacity internationally and across broader leadership and consulting services.

Kevin Davidson: As per the plan, we have been investing in growth in our core UK-based executive search offering, whilst also building capability and capacity internationally and across broader leadership and consulting services. Finally, with the improved momentum and contracted revenues in place, despite continued market challenges, we are confident in a strong H2 to the year. For those of you who are less aware of the brand, Norman Broadbent is the oldest UK headquartered executive search firm with over 45 years of rich heritage. We serve clients globally across over 80 countries to date. For those who have seen this slide before, you will note that the map is now global. In 2022, we expanded our UK office network from London and Knutsford to also include Edinburgh and Aberdeen.

Speaker #2: And finally, with improved momentum and contracted revenues in place, despite continued market challenges, we are confident in a strong second half of the year.

Speaker #2: So, for those of you who are less familiar with the brand, Norman Broadbent is the oldest UK-headquartered executive search firm. With over 45 years of rich heritage, we serve clients globally across more than 80 countries to date. For those who have seen this slide before, you will note that the map is now global.

Speaker #2: In 2022, we expanded our UK office network from London and Knutsford to also include, in the last 18 months, we've also now recruited team members in the Middle East, the US, Australia, and Norway.

Kevin Davidson: In the last 18 months, we have also now recruited team members in the Middle East, the US, Australia, and Norway. In recent years, we have focused our efforts back on building the core of executive and non-executive search alongside developing our interim management offering. We do also provide broader leadership advisory services, which is an area we are better positioned to build and scale now that the business turnaround is complete. It is also worth noting that we are the only UK-listed executive search firm. For anyone less familiar with the model, unlike general staffing and recruitment businesses, all of our work is at the senior end of organizations. Our executive search work, which does represent the bulk of our revenues, is all retained with our fees being paid in three stages. The first, at project instigation, the second on the delivery of a shortlist, and the third upon placement.

Speaker #2: In recent years, we have focused our efforts back on building the core of executive and non-executive search. Alongside developing our interim management offering, we also provide broader leadership advisory services, which is an area we are better positioned to build and scale now that the business turnaround is complete.

Speaker #2: It's also worth noting that we are the only UK-listed executive search firm. And for anyone less familiar with the model, unlike general staffing and recruitment businesses, all of our work is at the senior end of organizations. Our executive search work, which does represent the bulk of our revenues, is all retained, with our fees being paid in three stages: the first at project instigation, the second on the delivery of a shortlist, and the third upon placement.

Speaker #2: This provides us with some visibility of future revenue streams and ensures our resources are committed to commercial projects. Here is a snapshot of some of the clients we partner with.

Kevin Davidson: This provides us with some visibility of future revenue streams and ensures our resources are committed to commercial projects. Here is a snapshot of some of the clients we partner with. You will see a lot of recognizable brands, many of which we have preferred supplier status with, and we deliver multiple projects for every year. I am also delighted to share the new vertical of civil society, education, and public sector, which has been established through the acquisition of Society Ltd earlier in the year. We have also strengthened leadership of the consumer markets team and added two seasoned fee earners to the investor team, which is focused specifically, excuse me, on the private equity sector, both in the UK and internationally. in H1 2026, 71% of our revenue came from clients that we had previously worked with.

Speaker #2: You will see a lot of recognizable brands, many of which we have preferred supplier status with, and we deliver multiple projects for them every year.

Speaker #2: I'm also delighted to share the new vertical of Civil Society, Education & Public Sector, which has been established through the acquisition of Society earlier in the year.

Speaker #2: We have also strengthened leadership within the Consumer Markets team and added two seasoned fee earners to the Investor team, which is focused specifically—excuse me—on the private equity sector, both in the UK and internationally.

Speaker #2: In H1 2026, 71% of our revenue came from clients that we had previously worked with. This is very similar to the statistic in 2025, and it demonstrates a healthy repeat business platform, while also underscoring our commitment to new business development.

Kevin Davidson: This is very similar to the stat in 2025, and it demonstrates a healthy repeat business platform whilst also underscoring our commitment to new business development. I am now going to pass over to Mehr to run through our H1 financial highlights.

Speaker #2: I'm now going to pass over to Meher to run through our H1 financial highlights.

Speaker #1: Thanks, Kevin. We'll take a few minutes to walk you through the key movements in our financial performance for the first half of 2026. The first half performance should be viewed against an exceptionally strong comparative period.

Operator: Thanks, Kevin. I will take a few minutes to walk you through the key movements in our financial performance for the first half of 2026. The first half performance should be viewed against an exceptionally strong comparative period. Q4 2025 delivered a record NFI of GBP 3.3 million. That performance benefited from a number of candidate placements completing in December rather than January as originally anticipated. As a result, income was brought forward into the prior year. This timing effect reduced January income relative to the expectations and resulted in Q1 NFI of GBP 2.2 million. It was pleasing to see performance rebound in Q2 with NFI recovering to GBP 3.1 million.

Mehr Malik: Thanks, Kevin. I will take a few minutes to walk you through the key movements in our financial performance for the first half of 2026. The first half performance should be viewed against an exceptionally strong comparative period. Q4 2025 delivered a record NFI of GBP 3.3 million. That performance benefited from a number of candidate placements completing in December rather than January as originally anticipated. As a result, income was brought forward into the prior year. This timing effect reduced January income relative to the expectations and resulted in Q1 NFI of GBP 2.2 million. It was pleasing to see performance rebound in Q2 with NFI recovering to GBP 3.1 million.

Speaker #1: Q4 2025 delivered a record NFI of £3.3 million. That performance benefited from a number of candidate placements completing in December rather than January, as originally anticipated.

Speaker #1: As a result, income was brought forward into the prior year. This timing effect reduced January income relative to expectations and resulted in Q1 NFI of £2.2 million.

Speaker #1: It was pleasing to see performance rebound in Q2, with NFI recovering to £3.1 million. The underlying momentum has been rebuilt during the period, with retainer income—a lead indicator of NFI—increasing by 28% from Q1 to Q2.

Mehr Malik: The underlying momentum has been rebuilt during the period with retainer income, a lead indicator of NFI, increasing by 28% from Q1 to Q2. This improvement is encouraging and is further supported by a healthy work in progress balance entering H2 of 2026. Underlying EBITDA was a loss of GBP 0.2 million compared with a profit of GBP 0.8 million in H1 2025. This movement reflects the planned investment in headcount during the year, combined with the impact of a slower start to trading and a more challenging macroeconomic environment. Our sales and related headcount has increased by nine hires in the period. This includes the colleagues who have joined us through the Society Ltd acquisition. As we have said previously, our new fee earners joiners take typically 12 to 18 months to bed in before reaching the fee earning capacity we would expect at maturity.

Speaker #1: This improvement is encouraging and is further supported by a healthy work in progress balance entering half 2 of 2026. Underlying EBITDA was a loss of 0.2 million compared with a profit of 0.8 million in half 1, 2025.

Speaker #1: This movement reflects a planned investment in headcount during the year, combined with the impact of a slower start to trading and a more challenging macroeconomic environment.

Speaker #1: Our sales and related headcount has increased by nine hires in the period. This includes the colleagues who have joined us through the Society acquisition.

Speaker #1: As we have said previously, our new fee earner joiners typically take 12 to 18 months to bed in before reaching the fee earning capacity we would expect at maturity.

Speaker #1: This means that EBITDA is naturally suppressed as we invest ahead of income growth. We remain disciplined around our cost base, but our planned investment in headcount, in addition to the costs associated with the acquisition and the capital reduction, resulted in a loss before tax of £0.5 million.

Mehr Malik: This means that EBITDA is naturally suppressed as we invest ahead of income growth. We remain disciplined around our cost base, but our planned investment in headcount, in addition to the costs associated with the acquisition and the capital reduction, resulted in a loss before tax of GBP 0.5 million. The net debt at the H1 was GBP 0.8 million. This reflects the lower cash generation from the slower start to the year and the timing of annual bonus payments made during this half, which related to the strong performance delivered in FY25. Importantly, we remain very comfortable with the cash flow profile and expect the cash position to strengthen in the H2 as the improved trading converts into cash. The completion of the share capital reduction is a positive milestone for us. It has simplified our capital structure and created distributable reserves.

Speaker #1: The net debt at the half-year was £0.8 million. This reflects the lower cash generation from the slower start to the year and the timing of annual bonus payments, made during this half, which related to the strong performance delivered in FY25.

Speaker #1: Importantly, we remain very comfortable with the cash flow profile and expect the cash position to strengthen in the second half, as the improved trading converts into cash.

Speaker #1: The completion of the share capital reduction is a positive milestone for us. It has simplified our capital structure and created distributable reserves. This provides us with the opportunity to consider future cash returns to shareholders, while continuing to invest in longer-term value creation.

Mehr Malik: This provides us with the opportunity to consider future cash returns to shareholders while continuing to invest in longer term value creation. I will now hand you back to Kevin.

Speaker #1: I will now hand you back to Kevin.

Speaker #2: Thank you, Meher. This slide shows our net fee income for the first half over the past five years. As you can see, while NFI does vary on a quarterly basis, the directional trend since 2021 has been clearly positive.

Kevin Davidson: Thank you, Mehr. This slide shows our net fee income for the H1 over the past five years. As you can see, whilst NFI does vary on a quarterly basis, the directional trend since 2021 has been clearly positive. Following a record year in 2025, we did begin this year with a weaker pipeline, which impacted Q1 performance. Positive momentum since January enabled us to deliver a stronger Q2 this year than in any previous year, and this momentum has continued so far into the H2. Let's not forget what a great performance this is by the team during a quarter where the Iran conflict and domestic politics have been ever-present challenges. This demonstrates how resilient our platform now is. We'll now look in some more detail at the progress we've made in scaling the business, where we are today.

Speaker #2: Following a record year in 2025, we did begin this year with a weaker pipeline, which impacted Q1 performance. Positive momentum since January enabled us to deliver a stronger Q2 this year than in any previous year, and this momentum has continued so far into the second half.

Speaker #2: And let's not forget what a great performance this is by the team during a quarter where Iran conflict and domestic politics have been ever-present challenges.

Speaker #2: This demonstrates how resilient our platform now is. We'll now look in some more detail at the progress we've made in scaling the business. Where we are today—having completely transformed and modernized the business over the past few years—we have established a much stronger platform on which to scale in the next phase of our journey.

Kevin Davidson: Having completely transformed and modernized the business over the past few years, we have established a much stronger platform on which to scale in the next phase of our journey. We will continue to invest in the core, but this will also include a diversification of service lines, which complement and strengthen our executive search offering as well as internationalization. We're already making good progress on all of these fronts. By more rapidly scaling the company, we will generate enhanced equity value for investors through improved earnings, cash generation, and return on capital. Greater scale will also provide greater resilience. There will be increasingly less concentration risk around star performers, significant clients, particular geographies or markets. Our success to date has been through organic growth.

Speaker #2: We will continue to invest in the core, but this will also include a diversification of service lines, which complement and strengthen our executive search offering, as well as internationalization.

Speaker #2: We're already making good progress on all of these fronts. By more rapidly scaling the company, we will generate enhanced equity value for investors through improved earnings, cash generation, and return on capital.

Speaker #2: Greater scale will also provide greater resilience. There will be increasingly less concentration risk around star performers, significant clients, particular geographies, or markets. Our success to date has been through organic growth.

Speaker #2: Recruitment of high-quality fee earners will continue to be the driving force as we scale. Building capacity in the areas we have identified has presented the most opportunities for us.

Kevin Davidson: Recruitment of high quality fee earners will continue to be the driving force as we scale, building capacity in the areas we have identified as presenting the most opportunities for us. I would like to now cover some of the initiatives we have been focused on and what we have achieved. Firstly, our track record of successfully growing market verticals speaks for itself and includes civil aviation and aerospace, life sciences and healthcare, chemicals, private equity, travel and hospitality, board, and our functional practice covering human resources, people, and culture. The acquisition of Society and our successful UK Government RM6394 Executive & Non-Executive Search 3 framework award also provide a new and exciting vertical for us to grow and invest in. Secondly, in addition to further scaling our executive search and interim management teams, we have begun to develop broader leadership advisory services in a disciplined manner and have recruited a senior individual to lead this.

Speaker #2: I'd like to now cover some of the initiatives we've been focused on, and what we have achieved. Firstly, our track record of successfully growing market verticals speaks for itself.

Speaker #2: And includes civil aviation and aerospace, life sciences and healthcare, chemicals, private equity, travel and hospitality, board, and our functional practice covering human resources, people, and culture.

Speaker #2: The acquisition of Society and our successful UK government framework award also provide a new and exciting vertical for us to grow and invest in.

Speaker #2: Secondly, in addition to further scaling our executive search and interim management teams, we have begun to develop broader leadership advisory services in a disciplined manner, and have recruited a senior individual to lead this.

Kevin Davidson: Secondly, in addition to further scaling our executive search and interim management teams, we have begun to develop broader leadership advisory services in a disciplined manner and have recruited a senior individual to lead this.

Speaker #2: These additional services enable us to become more deeply embedded with our clients and better positioned to commercially leverage already established relationships. For example, we have piloted, and are now in the process of launching, an onboarding accelerator program which, alongside our psychometric testing tools, will be sold with every search.

Kevin Davidson: These additional services enable us to become more deeply embedded with our clients and better positioned to commercially leverage already established relationships. For example, we have piloted and are now in the process of launching an onboarding accelerator program, which alongside our psychometric testing tools, will be sold with every search. We have also successfully sold our first volume leadership assessment program. This is with a global company which we have not worked with before, initially supporting them in the Middle East, but with the potential to expand this engagement globally. We will also have the opportunity to now leverage that relationship to secure search mandates with a new client. Thirdly, our growth is also now increasingly international. By strengthening our presence in lucrative overseas markets, we will be able to scale in a more material and balanced way.

Speaker #2: We have also successfully sold our first volume leadership assessment program. This is with a global company which we haven't worked with before, initially supporting them in the Middle East, but with the potential to expand this engagement globally.

Speaker #2: We will also have the opportunity to now leverage that relationship to secure search mandates with a new client. Thirdly, our growth is also now increasingly international.

Speaker #2: By strengthening our presence in lucrative overseas markets, we will be able to scale in a more material and balanced way. This includes two new fee-earner appointments in the Middle East, and one in Houston in the first half of 2026.

Kevin Davidson: This includes two new fee earner appointments in the Middle East and one in Houston in the H1 of 2026. We are also seeking opportunities to more rapidly accelerate organic growth through the potential of recruiting entire teams. These are hard to find and to execute but can be more value creative than M&A. Finally, there continues to be a rapid advancement in technology and AI in particular, which we are tracking and assessing. Tools are reaching varying degrees of maturity now, where we can see potential opportunity for adoption and tangible benefit to the business, especially when extrapolated over the scale we are targeting. We continue to manage capital in a prudent way to support growth across all of these areas, whilst also continuing to look for more significant strategic investment opportunities such as M&A.

Speaker #2: We are also seeking opportunities to more rapidly accelerate organic growth through the potential of recruiting entire teams. These are hard to find and to execute, but can be more value-creative than M&A.

Speaker #2: Finally, there continues to be a rapid advancement in technology, and AI in particular, which we are tracking and assessing. Tools are reaching varying degrees of maturity now, where we can see potential opportunities for adoption and tangible benefit to the business.

Speaker #2: Especially when extrapolated over the scale we are targeting. We continue to manage capital in a prudent way to support growth across all of these areas.

Speaker #2: Whilst also continuing to look for more significant strategic investment opportunities, such as M&A, we have adopted a disciplined approach to corporate development—from identification, engagement, and assessment of potential acquisition targets.

Kevin Davidson: We have adopted a disciplined approach to corporate development from identification, engagement, and assessment of potential acquisition targets. Whilst we have passed on most of these where we could not get comfortable with the risk factors, we were delighted to report earlier in the year our successful acquisition of Society. The team are incredibly culturally aligned with ours. They operate in adjacent and complementary sectors, have excellent market credibility and track record, and importantly, there is a considerable opportunity for us to invest and scale through them. We were able to negotiate excellent terms, and the integration has been incredibly smooth.

Speaker #2: Whilst we have passed on most of these, where we couldn't get comfortable with the risk factors, we were delighted to report earlier in the year our successful acquisition of Society.

Speaker #2: The team is incredibly culturally aligned with ours. They operate in adjacent and complementary sectors, have excellent market credibility and a strong track record. Importantly, there's a considerable opportunity for us to invest and scale through them.

Speaker #2: We were able to negotiate excellent terms, and the integration has been incredibly smooth. Already, the combination of our scale and their specialism has enabled us to win mandates that neither of us would have secured in the past.

Kevin Davidson: Already, the combination of our scale and their specialism has enabled us to win mandates neither of us would have secured in the past, and there are a great deal more to tackle together, not least the UK Government RM6394 Executive & Non-Executive Search 3 framework award, which we announced last month and which runs for a minimum of 3 years. Underpinning everything is our people and our culture. When I joined 5 years ago, we were a company in survival mode, and we are now one positioned for and demonstrating growth. We have expanded the SLT and empowered them to drive growth in their respective markets. We have doubled sales and related staff whilst also fundamentally transforming the business. We promote from within at all levels, and we have developed a structured route from research to fee earning, which ensures greater retention and enhanced organic growth. Driving all of this is our culture.

Speaker #2: And there are a great deal more to tackle together, not least the UK Government Framework Award, which we announced last month and which runs for a minimum of three years.

Speaker #2: Underpinning everything is our people and our culture. When I joined five years ago, we were a company in survival mode, and we're now well positioned for and demonstrating growth.

Speaker #2: We've expanded the SLT to we've expanded the SLT and empowered them to drive growth in their respective markets. We have doubled sales and related staff, whilst also fundamentally transforming the business.

Speaker #2: We promote from within at all levels, and we've developed a structured route from research to fee-earning, which ensures greater retention and enhances organic growth.

Speaker #2: Driving all of this is our culture. We reset this at the outset, and we continue to invest. We were delighted to achieve a three-star, world-class recognition from Best Companies.

Kevin Davidson: We reset this at the outset, and we continue to invest. We were delighted to achieve a 3-star world-class recognition from Best Companies. This is the highest level of recognition, and very few companies achieve this standard. Finally, the Society acquisition, as already covered, has been such a success because of the people in both teams and their completely aligned cultures and values. Finally, I will turn to our outlook. Looking ahead, despite a slower start to the year and continued challenging markets, the wind is in our sails. Q2 was our best on record in terms of total NFI and retainer income, which is the lead indicator of a growing pipeline. This momentum has continued into Q3, and whilst time to placement has with a number of clients stretched, we are confident in delivering a strong H2 to the year.

Speaker #2: This is the highest level of recognition, and very few companies achieve this standard. Finally, the Society acquisition, as already covered, has been such a success because of the people in both teams and our completely aligned cultures and values.

Speaker #2: Finally, I will turn to our outlook. So, looking ahead, despite a slower start to the year and continued challenging markets, the wind is in our sails.

Speaker #2: Q2 was our best on record in terms of total NFI and retainer income, which is the lead indicator of a growing pipeline. This momentum has continued into Q3, and whilst time to placement with a number of clients has stretched, we are confident in delivering a strong second half to the year.

Speaker #2: As per our stated plan to scale the business, we have made great strides and continue to do so. We're growing quality headcount across multiple markets and service lines, which should drive enhanced shareholder returns.

Kevin Davidson: As per our stated plan to scale the business, we have made great strides and continue to do so. We are growing quality headcount across multiple markets and service lines, which should drive enhanced shareholder returns. Thank you for your attention, and we are now ready to take any questions.

Speaker #2: Thank you for your attention, and we're now ready to take any questions.

Speaker #1: That's great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions by using the Q&A tab situated in the right-hand corner of your screen.

Operator: That is great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I would like to remind you the recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. We have received a number of questions throughout today's presentation, and if I may just start off with the first question here, which reads as follows. Good Q2 performance. Are you on track for the H2?

Speaker #1: Just while the company take a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard.

Speaker #1: We have received a number of questions about today's presentation, and if I may, I'll just start off with the first question here, which reads as follows.

Speaker #1: Good Q2 performance. Are you on track for the second half?

Kevin Davidson: Yes. We are very confident about a strong performance in the H2. I think we covered that quite well in the presentation. The retainer income has grown over Q2, and we have maintained that momentum into Q3. That is the bit that clearly we have the most visibility over. Placements are a little bit less predictable in terms of the timeline to placement, and there have been some more elongated processes just with degrees of confidence from some clients. But we have got the momentum. The retainer income levels continue to be strong, and our pipeline is in a very good shape. Q3 is tracking very well.

Speaker #2: Yes, we are very confident about a strong performance in the second half. I think we covered that quite well in the presentation. The retainer income has grown over Q2, and we've maintained that momentum into Q3.

Speaker #2: That's the bit that, clearly, we have the most visibility over. Placements are a little bit less, and there have been some more elongated processes, just with degrees of confidence from some clients, but we have got the momentum.

Speaker #2: The retainer income levels continue to be strong in our pipelines and are in very good shape. So, Q3 is tracking very well.

Speaker #1: That's great. Just tying into the next question here: "How exposed are you to the Middle East?"

Operator: That is great. Just turning to the next question here. How exposed are you to the Middle East?

Speaker #2: The Middle East business has held up really well. I think that's probably a reflection of the clients that we work with in the Middle East and their global nature.

Kevin Davidson: Well, the Middle East business has held up really well. I think that is probably a reflection of the clients that we work with in the Middle East and their global nature. We have not been impacted too dramatically in the Middle East. Actually, we are quite confident that when things do stabilize in the region, there is going to be quite considerable investment, and we are very well positioned to be able to capitalize on that.

Speaker #2: So we haven't been impacted too dramatically in the Middle East, and actually, we're quite confident that when things do stabilize in the region, there's going to be quite considerable investment, and we're very well positioned to be able to capitalize on that.

Speaker #1: That's great. And just tying into the next question here: What is the ideal acquisition for Norman Broadbent?

Operator: That is great. Just turning to the next question here. What is the ideal acquisition for Norman Broadbent?

Kevin Davidson: We've got some real optionality on this, and I think Society was a great acquisition for us. Again, as we covered in the presentation, the terms of the deal were very good. They were very culturally aligned with us, operating in adjacent sectors where we didn't have too much previous exposure. Great opportunity for us to scale on another platform. We're going to continue to look for other tuck-in, bolt-on type opportunities such as Society. But we also look at more significant opportunities where we can add more scale in the medium to short-term. But we're really, really focused on growing our equity value over the next two to three years, and that's our focus.

Speaker #2: We've got some real optionality on this, and I think Society was a great acquisition for us. Again, as we covered in the presentation, the terms of the deal were very good.

Speaker #2: They were very culturally aligned with us, operating in adjacent sectors where we didn't have too much previous exposure. It was a great opportunity for us to scale.

Speaker #2: On another platform. So we're going to continue to look for other tuck-in, bolt-on type opportunities, such as Society, but we'll also look at more significant opportunities where we can add more scale in the medium to short term.

Speaker #2: But we're really, really focused on growing our equity value over the next two to three years, and that's our focus.

Speaker #1: That's great. Just moving on here. What currency do you have to grow in the US?

Operator: That's great. Just moving on here. What currency do you have to grow in the US?

Speaker #2: So, the Norman Broadbent brand historically was known in the US, but the brand itself wouldn't have as much strength as it had maybe a decade or so ago.

Kevin Davidson: The Norman Broadbent brand historically was known in the US, but the brand itself wouldn't have as much strength as it had maybe a decade or so ago. However, a number of us have got very, very strong relationships and networks across the US, and a lot of our clients are US clients that we support in the US and internationally. We've already got the footholds in the market. I think the PLC status does help to some extent, but it's really based on the relationships that the individuals here have already got and the people that we're recruiting. Actually, I mentioned a project that our Society colleagues secured recently, which they wouldn't have secured had they not been part of Norman Broadbent, and equally, we would not have secured had we not made the acquisition of Society.

Speaker #2: However, a number of us have very, very strong relationships and networks across the US, and a lot of our clients are US clients that we support both in the US and internationally.

Speaker #2: So we've already got the footholds in the market. I think the PLC status does help to some extent, but it's really based on the relationships that the individuals here have already got, and the people that we're recruiting.

Speaker #2: Actually, I mentioned a project that our Society colleagues secured recently, which they wouldn’t have secured had they not been part of Norman Broadbent, and equally, we would not have secured had we not made the acquisition of Society.

Speaker #2: That was also complemented by the fact that we've got people based in the US. This is a US-headquartered international development organization, and it certainly gave them comfort that we had a presence in the US.

Kevin Davidson: That was also complemented by the fact that we've got people based in the US. This is a US-headquartered international development organization, and it certainly gave them comfort that we had a presence in the US.

Speaker #1: Thank you. Just tying to the next question. Are you comfortable with working capital management? Sales were down, yet debtors were up. Equally, creditors are significantly down, necessitating the need for an ID line.

Operator: Thank you. Just turning to the next question. Are you comfortable with working capital management? Sales were down, yet debtors were up. Equally, creditors are significantly down, necessitating the need for an OD line.

Kevin Davidson: I will pass over to Mehr for I am comfortable with working capital management. I think it was fairly well covered in the presentation, but I will pass to Mehr to make a few more comments on that.

Speaker #2: I'll pass over to Meher, as I am comfortable with working capital management. I think it was fairly well covered in the presentation, but I'll pass to Meher to make a few more comments on that.

Speaker #3: Yeah, and I would say we are comfortable with this. It's a similar position to one that we've been in in previous years. H1 is typically going to be sort of using up more cash than H2, because our bonus payments are made in the first half.

Mehr Malik: Yeah. I would say we are comfortable with this. It is a similar position to one that we have been in in previous years. H1 is typically going to be using up more cash than H2 because our bonus payments are made in the first half, and there is no significance of the debt as being up. We have some big clients in the UAE and Saudi who take sometimes a bit of time to pay us, but they do always pay us. We do not have any bad debt. The creditors would have gone down because we had the significant annual bonuses that went out at the end of the half. So that is fine.

Speaker #3: And there's no significance to the debtors being up. We have some big clients in the UAE and Saudi who sometimes take a bit of time to pay us, but they do always pay us.

Speaker #3: We don't have any bad debt. And the creditors would have gone down because we had the significant annual bonuses that went out at the end of the half.

Speaker #3: So that's fine.

Speaker #1: Thank you. Do you still have the £14 to £15 million tax losses available?

Operator: Thank you. Do you still have the GBP 14 to GBP 15 million tax losses available?

Speaker #3: Yeah, we do. We had just over £15.5 million at the end of the year.

Mehr Malik: Yeah. We do. We had about just over GBP 15.5 million at the end of the year.

Speaker #1: That's great. Just tying to the next question: Do you need to invest significantly in systems and technology, and how are you positioning the business for AI?

Operator: That's great. Just turning to the next question. Do you need to invest significantly in systems and technology, and how are you positioning the business for AI?

Kevin Davidson: Well, we have already invested heavily in systems and technology, including AI. We've got most of the tools that we utilize have got some AI enablement, such as the behavioral assessment tool, which we utilize, and a number of our market mapping tools. We are very much a consultancy firm, so the kind of existential challenges that AI have had on the broader recruitment sector don't impact executive search to nearly the same extent. There's clearly productivity enhancements that we can have through increased use of AI, and we are exploring tools right now which could offer a more holistic solution. At the moment, it's quite a fragmented toolkit, but there's definitely some other tools there now that are coming to more mature stages than they would have been a couple of years ago that give us the opportunity to consolidate that toolkit.

Speaker #2: We have already invested in the heavily in systems and technology and including AI. We've got most of the tools that we utilize have got some AI enablement, such as the behavioral assessment tool, which we utilize, and a number of our market mapping tools.

Speaker #2: We are very much a consultancy firm, so the kind of existential challenges that AI has had in the broader recruitment sector don't impact executive search.

Speaker #2: To nearly the same extent, there are clearly productivity enhancements that we can achieve through increased use of AI, and we are exploring tools right now which could offer a more holistic solution.

Speaker #2: At the moment, it's quite a fragmented toolkit, but there are definitely some other tools now that are coming to more mature stages than they would have been a couple of years ago, which give us the opportunity to consolidate that toolkit.

Speaker #1: That's great. Just moving on. When do we see the EBITDA generation from the headcount investment?

Operator: That's great. Just moving on. When do we see the EBITDA generation from the headcount investment?

Speaker #3: Well, when our fee owners join, they start generating NSI within 6 to 12 months, really. They can break even at various points in time, but typically it's around 12 months.

Mehr Malik: Well, when our fee earners join, they start generating NFI within 6 to 12 months, really. They can break even at various points in time, but typically, it's around 12 months.

Speaker #3: And then once they sort of settled in into the business, we expect them to sort of be doing the fee earnings capacity, like I said earlier, at sort of full maturity by about 18 months.

Mehr Malik: Once they've settled into the business, we expect them to be doing the fee earning capacity, like I said earlier, at full maturity by about 18 months. That's great. Are the staff numbers stated averages or period end numbers? How many additional heads do you anticipate adding during H2?

Speaker #1: That's great. Are the staff numbers stated averages or period-end numbers? How many additional heads do you anticipate adding during H2?

Speaker #2: So, there are period-end numbers. In terms of additional heads, I probably wouldn't anticipate quite as many in the second half, but look, we're in the market all the time for good quality talent.

Kevin Davidson: They're period end numbers. In terms of additional heads, probably wouldn't anticipate quite as many in the second half. But look, we're in the market all the time for good quality talent. If they help drive that value creation over the next 2 to 3 years, whilst obviously within constraints of our working capital, then we will look to hire good quality people. I wouldn't imagine it's 9, but I wouldn't put a specific number on it. We'll hire talent where we can.

Speaker #2: If they help drive that value creation over the next two to three years, whilst obviously within the constraints of our working capital, then we will look to hire good-quality people.

Speaker #2: So I wouldn't imagine it's nine, but I wouldn't put a specific number on it. We'll hire talent where we can.

Speaker #1: Thank you. You discussed your decision to decline a potential acquisition opportunity during H1. What are the key facets that you look for when considering M&A?

Operator: Thank you. You discuss your decision to decline a potential acquisition opportunity during H1. What are the key facets that you look for when considering M&A?

Speaker #2: I think, again, we've touched on that in the presentation. I mean, top of the list is cultural alignment with our team. We've invested so much in culture, and I do believe that is one of our absolute differentiators.

Kevin Davidson: I think, again, we've touched on that in the presentation. Top of the list is cultural alignment with our team. We've invested so much in culture, and I do believe that is one of our absolute differentiators. So if the cultural alignment isn't there, we would move on. Sectoral focus. So, if we were acquiring a company that does largely what we do, there's a real challenge in terms of integration and competition over sectors, clients, et cetera. So again, that's why Society was great because they're in the not-for-profit public sector and higher education, where we didn't play at all, or if we did, it was very marginal. So any opportunities where companies operate in adjacent sectors or they can augment the work that we already do in a sector, we would consider, but top of the list is going to be cultural alignment.

Speaker #2: So, if the cultural alignment isn't there, we would move on. Now, sectoral focus: If we were acquiring a company that does largely what we do, there's a real challenge in terms of integration and competition over sectors, clients, etc.

Speaker #2: So again, that's why society was great, because they're in the not-for-profit public sector and higher education, where we didn't play at all, or if we did, it was very marginal.

Speaker #2: So, any opportunities where companies operate in adjacent sectors or where they can cement the work that we already do in the sector, we would consider. But top of the list is going to be cultural alignment.

Operator: That's great. Just heading to the next question here. What more can you share about the potential transformational acquisition which you walked away from in H1 2026, which is mentioned in the interim results announcement?

Speaker #2: It's going to be at the top of the list.

Speaker #1: That's great. And just tying to the next question here: What more can you share about the potential transformational acquisition, which you walked away from in H1 2026 and which is mentioned in the interim results announcement?

Speaker #2: So, I think when we talk about cultural alignment, that opportunity ticked the boxes: strong culture, retained staff well, well-respected by clients. It ultimately came down to some of the financial factors there, which clearly are critical.

Kevin Davidson: Well, I think, when we talk about cultural alignment, that opportunity ticked the boxes. Strong culture, retained staff well, well-respected by clients. It ultimately came down to some of the financial factors there, which clearly are critical. I think the business was in a position where there was some real vulnerabilities around some key people. I think the structure of the business in terms of the support infrastructure and the costs that we would have to incur if we went through a corporate acquisition there, just the risk factors were just too high for us to proceed with that. But I think that just underscores the quality of the balance sheet that we look at there. Ultimately, that was a financial decision. Whilst the cultural alignment was there, and sectorally, we would've augmented our team very well, but the financial risk just didn't stack up for us.

Speaker #2: I think the business was in a position where there were some real vulnerabilities around some key people. I think the structure of the business, in terms of the support infrastructure and the costs that we would have to incur if we went through a corporate acquisition—the risk factors were just too high for us to proceed with that.

Speaker #2: But I think that just underscores the quality of the balance sheet that we look at there. Ultimately, that was a financial decision; while the cultural alignment was there, and sectorally they would have augmented our team very well, the financial risk just didn't stack up for us.

Speaker #1: That's great. And just then, the final question we have here reads: "How quickly do you feel you'll be able to grow the leadership consultancy business?"

Operator: That's great. Just the final question we have here is, how quickly do you feel you'll be able to grow the leadership consultancy business?

Speaker #2: So, that is growing now. That takes a bit of time, as does the search business, but we have got momentum there now also. So, what we've been doing is productizing a number of the service offerings, which we did already have.

Kevin Davidson: That is growing now. That takes a bit of time, as does the search business, but we have got momentum there now also. What we've been doing is productizing a number of the service offerings which we did already have, such as coaching, onboarding coaching particularly. We can attach that to every search mandate where we can provide consultancy support in the first 100 days of the person starting. We've institutionalized that now and rolled out to the team to sell that with every single search. We'll be doing that from the beginning of Q4. The beauty of that is that most of the delivery is done by third-party associates, so we're not carrying the fixed cost of the individuals that deliver the service.

Speaker #2: So, such as coaching—onboarding coaching, particularly. So we can attach that to every search mandate, where we can provide consultancy support in the first 100 days of the person starting.

Speaker #2: We've institutionalized that now and rolled it out to the team to sell that with every single search. We'll be doing that from the beginning of Q4.

Speaker #2: The beauty of that is that most of the deliveries are done by third-party associates, so we're not carrying the fixed cost of the individuals that deliver the service.

Speaker #2: So, our investment has gone into developing the methodology, the support and collateral, etc., etc. But the execution of it will be done by associates. We have also now won our first programmatic leadership assessment project with a client, which is actually based in the Middle East—one which I did mention in the presentation.

Kevin Davidson: Our investment's gone into developing the methodology, the supporting collateral, et cetera, but the execution of it will be done by associates. We have also now won our first programmatic leadership assessment project with a client which is actually based in the Middle East, one which I did mention in the presentation we haven't worked with before. That's fairly modest in scale, but the opportunity now as we build the track record of delivering these is enormous. It will take some time, but we've got some momentum with us on the leadership consulting space now as well, and I think we'll continue to see that over the years to come on a number of fronts from the broader leadership assessment, but also other consultancy services, so onboarding, coaching, but also that can include succession planning, coaching, et cetera.

Speaker #2: We haven't worked with them before. That's fairly modest in scale, but the opportunity now, as we build the track record of delivering these, is enormous.

Speaker #2: So it will take some time, but we've got some momentum with us in the leadership consulting space now as well. And I think we'll continue to see that over the years to come.

Speaker #2: On a number of fronts—from the broader leadership assessment, but also other consultancy services, such as onboarding coaching, which can also include succession planning coaching, etc., etc.

Operator: That's great. Thank you for answering all those questions we have from investors. Of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Kevin, could I please just ask you for a few closing comments?

Speaker #1: That's great. Thank you for answering all the questions from investors. Of course, the company will review all questions submitted today and will publish those responses on the Investor Meet Company platform.

Speaker #1: Just before redirecting investors to provide you with their feedback—which you know is particularly important for the company—Kevin, could I please just ask you for a few closing comments?

Speaker #2: Yeah, thanks, Lily. And thank you, everyone, for your attention again. I'll probably just summarize by saying that we're really comfortable with where we are, halfway through the year.

Kevin Davidson: Yeah. Thanks, Lily, and thank you everyone for your attention again. Probably just summarize with we're really comfortable in where we are halfway through the year. We've been focused on strategic headcount growth, whilst delivering our medium-term P&L targets. We're really confident with the momentum and the retainer income that we've been able to sustain over what can be tricky summer months. We're very positive in the outlook for the H2 and for the scaling of the business in the years to come. Thank you, everyone.

Speaker #2: We've been focused on strategic headcount growth, whilst delivering our medium-term P&L targets. We're really confident with the momentum and the retainer income that we've been able to sustain over what can be tricky summer months.

Speaker #2: So we're very positive in the outlook for the second half, and for the scaling of the business in the years to come. Thank you, everyone.

Speaker #1: That's great. Thank you for updating investors today. Could I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback so that the management team can better understand your views and expectations.

Operator: That's great. Thank you for updating investors today. Can I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback in order that the management team can best understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

Speaker #1: This may take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

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Q2 2026 Norman Broadbent PLC Earnings Call

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Norman Broadbent

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