FINANCIALS: Losses grow at Norman Broadbent as start-up costs mount

Executive search and leadership consultancy Norman Broadbent made an operating loss of more than £1m in 2013.
Wed 28, May 2014Executive search and leadership consultancy Norman Broadbent made an operating loss of more than £1m in 2013.

The company says that the £1.07m loss, which compares with a loss of £38k in 2012, was mainly due to start-up losses in its new subsidiary businesses of £640k.

According to a company statement: “AGP (previously known as Arcus Global Partners) and Connecting Corporates, the two new subsidiary businesses established in early 2013 and late 2012 respectively, have between them generated £556k in revenue (2012: £36k) and as anticipated generated start-up losses totalling £640k (2012: profit £3k), reflecting inter alia the accelerated hiring of key personnel.”

Other losses came from its operations in Paris (now discontinued), Singapore and the US.

Revenue remained virtually flat at £7.55m compared with £7.63m in 2012.

Commenting on the results, Pierce Casey, chairman of Norman Broadbent, says: “In 2013 we continued to invest in growing our enhanced suite of service offerings and your board believes that our management teams are well placed to successfully execute our broadened strategy profitably.”

He continues saying that since year end, the company “has streamlined its international operations”, and is now refocusing on its core executive search and leadership consulting businesses in the UK and the US, as well as AGP and Connecting Corporates.

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