Norman Broadbent PLC returns to profit in first half

() has returned to profit in its first half in what it said was a “major landmark” following a change to its business model.

For the six months ended 30 June, the professional services firm reported an operating profit of £55,000, swinging from a £234,000 loss in the prior year.

WATCH: Norman Broadbent PLC hails return to profit in its first half

Revenues, meanwhile, had risen 13% to £5.2mln with net fee income (NFI), account-related charges and a key measurement of financial health for recruiters, up 7% at £3.5mln.

Looking ahead, the company said it was “confident” of continued top-line and NFI growth across the rest of the year and an “improved bottom line” for 2019.

Over the last year, the group has been trying to reduce its reliance on its executive search division and instead rebalance its income across its other businesses.

There was evidence that the strategy was starting to bear fruit, with executive search accounting for 46% of NFI in the period, down from 56% a year ago, while the company’s other segments, interim management and solutions, had both grown their share of total NFI.

Mike Brennan, chief executive, said the return to profit was an “extremely important milestone” and that the results had validated the firm’s strategy of diversifying its business.

Investors seemed similarly upbeat, with the shares rising 3% to 8.5p in early deals on Thursday.