Market's view on Norman Broadb
Published on April 2024
- Q1 NFI of the year showed a 12% decrease which was unexpected given a positive tone set during a recent investor presentation in March, where a £1.25m EBITDA target by 2025 was announced.
- Despite the decline in Q1 NFI, Q2 has started strongly with positive expectations including five new hires in Q2/Q3, aiming to maintain a trajectory towards achieving over £1.25m EBITDA in FY25.
- Share price has increased by approximately 75% over the past year, despite a minor dip recently.
- Noted shareholder, Downing, has reduced their stake from 14% to just over 3% since 22 January, with expectations that this will facilitate a share price increase to 15p over the summer.
- Norman Broadbent PLC has turned a profit in 2023 with a notable increase in revenue and operational investments, signaling a robust growth strategy with potential M&A opportunities.
- A shareholder highlights that 75% of shares are tightly held, including 7% by directors, suggesting a low free float which could lead to price volatility with any significant trading activity or news.
- The company is anticipated to be net cash positive by the end of the fiscal year, generating north of £1m EBITDA, and possibly engaging in all-share deals or using cash conservatively to boost business growth organically.