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NORMAN BROADBENT PLC: Oversubscribed placing and acquisition

13 November 2012 


                             Norman Broadbent plc                              
                     ("Norman Broadbent" or "the Company")                     
    Oversubscribed Placing, Acquisition and New Business Development Ventures   

Norman Broadbent is pleased to announce that it has raised £742,560 (the
"Subscription") through the issue of 2,120,600 new ordinary shares in the
capital of the Company at a price of 35 pence per share (the "Subscription
Shares") to existing institutional investors, a Director of the Company and
another investor. The Subscription, which was oversubscribed, is conditional
upon admission of the Subscription Shares to trading on AIM ("Admission"). The
net proceeds of the Subscription, amounting to approximately £730,000, will be
invested into three new complimentary business development ventures (detailed
below), which will enlarge and diversify the Company's product offerings in
line with the stated strategy of building a group of complimentary, separately
branded human capital businesses. The Company has also issued 319,285 new
ordinary shares as part of the consideration for the acquisition of 51 per
cent. of the issued share capital of one of the new business development
ventures ("Acquisition Shares").

Pierce Casey, a Director of the Company, has agreed to subscribe for 533,371
Subscription Shares as part of the Subscription. Following Admission and the
issue of the Acquisition Shares his holding in the enlarged issued share
capital of the Company will be as follows:
                                No. of         Shareholding   Percentage    
                                Subscription   following      holding of    
                                Shares         Admission      enlarged      
                                                              issued share  
                                                              capital       


                                                                        
Pierce Casey, Executive         533,371        3,200,598      24.53         
Chairman                                                                     
In addition, Jon Moulton, a substantial shareholder of the Company, has agreed
to subscribe for 533,371 Subscription Shares. Following Admission, Mr Moulton
will be beneficially interested in a total of 3,200,598 ordinary shares,
equivalent to 24.53 per cent. of the enlarged issued share capital of the
Company. 
Due to the fact that Pierce Casey is a Director of the Company and the size of
his shareholding, his participation in the Subscription constitutes a related
party transaction as defined by the AIM Rules. The participation in the
Subscription by Jon Moulton is also a related party transaction as defined by
the AIM Rules due to the size of his shareholding. The Directors of the Company
other than Mr Casey, having consulted with Merchant Securities Limited, the
Company's Nominated Adviser, consider that Mr Casey's and Mr Moulton's
participations in the Subscription are fair and reasonable insofar as
shareholders are concerned. 
Application will be made for the Subscription Shares and the Acquisition Shares
to be admitted to trading on AIM. Admission is expected to become effective on
16 November 2012. Following the admission of the Subscription Shares and the
Acquisition Shares, the Company will have 13,048,686 ordinary shares in issue. 
New Business Development Ventures 
The Company is investing in three new business development areas:  
- Extending NB: Leadership Consultancy and Executive Search into France and
Benelux;   
- The creation of a new mid-market recruitment business; and 
- Partnership in a new social media consultancy providing direct solutions to
in-house recruiters and a personal brand consultancy in social media profiling. 
European Acquisition: 
The Company is pleased to announce the acquisition of 51 per cent. of the
issued share capital of Acker Deboeck & Company SPRL ("Acker Deboeck") for a
cash consideration of €169,000 and the issue of the Acquisition Shares; total
consideration of £250,000. Acker Deboeck is an established, profitable, board
level leadership consulting and executive search business. Headquartered in
Brussels, Acker Deboeck has strong European client relationships, particularly
in France. 
Acker Deboeck was founded by Michel Deboeck, an occupational psychologist and
former Chief Human Resource Officer at BNP Paribas Fortis. Michel, Managing
Partner of Acker Deboeck, will retain a 49 per cent. interest in the company,
which will be rebranded and trade as Norman Broadbent from January 2013. Michel
will work closely with the heads of the existing offices to focus on building
Norman Broadbent's market share across core European markets. 
The acquisition builds on Norman Broadbent's growing reputation in, and
commitment to, leadership consulting. This commitment is further demonstrated
by the recent appointment of Carole Bodell as Managing Director of NB:
Leadership Consulting and HADIL. Carole has 25 years consultancy experience
with one of the world's largest specialist staffing services and human capital
consultancy companies. She also founded HRi in the UK in 2000 as a joint
venture with Vedior, which then merged with Randstad in 2008. Carole has
advised professionals, at all levels, on behalf of a broad range of businesses
from FTSE 100 companies to SMEs. Having sold her remaining shares in HRi last
year Carole is now looking to drive NB: Leadership Consultancy aggressively
over the coming years. 
New Business Launch for Mid-Market Recruitment: 
The Company will launch a separately branded, volume recruitment business to
capitalise on the growing trend in the market place to seek a value driven
recruitment solution below board level. This wholly owned subsidiary company
will target the hiring needs of clients for mid and junior management levels on
a typically non-retained fee basis. 
The strategy of this new business will be to build strong teams initially
servicing corporates in growth markets such as technology, telecoms,
pharmaceutical, healthcare and certain areas within financial services. This
will allow the Company to service the needs of clients who are looking to
experience an extension of the relationship they hold with the Norman Broadbent
search business, but through a distinctly different service offering. Our
Chairman Pierce Casey, who has a successful track record in this sector, will
also chair this new brand, which will be launched under a new, experienced team
in early 2013. The new business is expected to break-even within the second
year. 
New Social Media Consultancy Partnership: 
The Company is also pleased to announce a new partnership led by Adam Gordon,
the founder of `WinningWork' and `Social Media Search', two established and
respected brands in the social media industry. The Company owns 51 per cent. of
a new subsidiary which will initially trade under these two brands with Adam
Gordon, as Chief Executive, retaining a 49 per cent. interest. 
WinningWork focuses on providing a bespoke consulting service to senior
executives, developing their online business profiles and personal brands. It
also enables professional service executives to generate targeted business
development opportunities using established social media platforms. Social
Media Search will answer the rapid response needs of internal recruiters. It
will provide businesses with quick, targeted candidate lists and reference
information, through skilled media trained employees who understand the breadth
of social media and how to access and verify accurate information. 
Pierce Casey, Executive Chairman, commenting on the successful Subscription and
new business development ventures, said: 
"Investment in these new companies represents a significant step towards our
stated objective of building a group of complimentary, human capital
businesses. The Norman Broadbent executive search brand remains core to the
group, but with these investments we have the opportunity to diversify into the
upper end of the high volume recruitment market as well as building the board
level leadership consultancy business in the UK and Europe. As a result of this
diversification into services outside of core executive search, the board will
be considering a change of name for the Company to avoid any potential conflict
or devaluing of the Norman Broadbent brand at board level. 
We are delighted to welcome Michel, Carole, Adam and their respective teams to
the group." 
Contacts: 
Norman Broadbent plc                                   020 7484 0000           
Pierce Casey / Sue O'Brien / Ben Felton                                         
                                                                            
                                                                           
Merchant Securities Limited (Nominated Advisor &       020 7628 2200           
Broker)                                                                        
Simon Clements / Virginia Bull / Catherine Miles                                
Notes to Editors 
Norman Broadbent plc is a leading provider of executive search and leadership
consultancy services. It offers board and executive search services, interim
management services and leadership consultancy services, such as executive
assessment and development, talent management, and executive coaching services. 
Headquartered in London, the group operates globally and has offices in
Barcelona, Bogota, Brussels, Dublin, Limassol, Milan, Madrid, Singapore, Los
Angeles and across the Middle East. 
For further information visit www.normanbroadbent.com 
END 
-0- Nov/13/2012 07:00 GMT
 
 
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