Examining Norman Broadbent Plc’s (AIM:NBB) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess NBB’s latest performance announced on 31 December 2017 and weight these figures against its longer term trend and industry movements. Check out our latest analysis for Norman Broadbent
How Well Did NBB Perform?
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This enables me to examine various companies on a more comparable basis, using the most relevant data points. For Norman Broadbent, its most recent earnings (trailing twelve month) is -UK£1.54M, which compared to the prior year’s level, has become less negative. Given that these values are relatively short-term, I have created an annualized five-year figure for Norman Broadbent’s earnings, which stands at -UK£853.78K. This shows that, Norman Broadbent has historically performed better than recently, despite the fact that it seems like earnings are now heading back in the right direction again.We can further analyze Norman Broadbent’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Norman Broadbent’s revenue growth has been somewhat subdued, with an annual growth rate of -1.69%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the UK professional services industry has been growing, albeit, at a muted single-digit rate of 3.94% in the previous year, and a substantial 12.38% over the last five years. This shows that any recent headwind the industry is experiencing, it’s hitting Norman Broadbent harder than its peers.
What does this mean?
Norman Broadbent’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will happen in the future and when. The most useful step is to examine company-specific issues Norman Broadbent may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Norman Broadbent to get a better picture of the stock by looking at:
- Financial Health: Is NBB’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.