LONDON (ShareCast) - Recruitment services firm Norman Broadbent saw its shares slump on Wednesday after its annual losses widened on broadly flat group revenue.

The pre-tax loss for 2013 totalled £1.08m (2012: loss £0.07m) on revenue of £7.55m (2012: £7.63m), partially reflecting the increase in investment in the new subsidiary businesses and lossses from its offices in Singapore and the US.

The group also suffered a reduction in UK executive search revenues, which it said reflected a fall in fee generating headcount during the year, albeit with higher profitability.

Cash levels at the year-end fell to £0.58m from £1.01m a year earlier.

Chairman Pierce Casey said: "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. Since year end, your company has streamlined its international operations, refocusing on our core executive search and leadership consulting businesses in the UK and USA, and Arcus and Connecting Corporates."

The group has sold Norman Broadbent SPRL, its 51%-owned Belgian subsidiary to existing management, agreed to sell its 20% stake in Norman Broadbent Spain, and terminated the Norman Broadbent executive search and leadership consulting licences in Italy and the Middle East /North Africa, both on a mutually agreed basis.

He added: "[Our] renewed focus now provides for a streamlined group, with control of the Norman Broadbent brand worldwide."

Shares declined 17.33% to 31p by 09:20.

NR

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