Norman Broadbent PLC on Tuesday said net fee income had surged in the fourth quarter, as the company bolsters its position in Scotland.

The London-based recruitment firm said net fee income in 2022 was £7.3 million, up 27% from £5.8 million a year ago.

Net fee income for the fourth quarter was £2.3 million, up 29% from £1.8 million a year ago and up 40% compared to the average of £1.7 million for the previous three quarters.

Norman Broadbent shares were up 61% trading at 5.63 pence per share on Tuesday morning in London.

Earnings before interest, taxes, depreciation, and amortisation are expected to be about £100,000, up around £400,000 from a loss of £303,000 in 2021, the company noted.

Chief Executive Officer Kevin Davidson said the company is aiming to deliver annual Ebitda of £1.3 million in 2025, through organic growth.

Norman Broadbent added that it has a ‘very positive’ run rate carry over from the fourth quarter into the first quarter of 2023, with forward contracted revenue of £1.3 million, up 27% from £1.0 million a year ago.

The company said its Edinburgh office has been established ahead of schedule, as part of its plan to consolidate its position in Scotland. Norman Broadbent added that its London office is sublet over capacity, with the income offsetting the cost of its new offices in Aberdeen and Edinburgh.

‘I am delighted with our Q4 2022 performance and the achievements of the team in 2022 as a whole. As planned, the company generated positive annual Ebitda whilst also growing headcount significantly, thus building the platform for continued profitable growth in future years,’ Davidson said.

‘This includes a number of fee-generating hires made in Q4 2022 who will begin delivering revenue in Q1 2023. The quality and seniority of mandates has also been consistently rising over 2022 with the average fee per engagement increasing by 50% over that period.’

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