30 September 2014 Norman Broadbent plc ("Norman Broadbent" or "the Company" or "the Group") Interim ResultsNorman Broadbent, a leading provider of executive search, leadershipconsultancy and complementary recruitment services, today announces itsunaudited results for the six months ended 30 June 2014.Financial highlights * Revenue from continuing operations increased by 4.5 per cent to £3.82m (2013: £3.65m) * Gross profit from continuing operations increased by 7 per cent to £3.70m (2013: £3.46m) * UK executive search profit before tax increased by 8 per cent to £0.23m (2013: £0.21m) * UK executive search revenue per billing consultant increasing by 4 per cent * Revenue from our two new subsidiary businesses, AGP and Connecting Corporates (rebranded Social Media Search), increased by £0.7m to £0.9m (2013: £0.2m) * Adjusted operating loss from continuing operations was £0.4m* (2013: £0.3m) reflecting, the continued investment AGP and Social Media Search * Group cash and cash equivalents were £0.24m (31 December 2013: £0.6m) * No bank debt * Net assets of £1.7m (2013: £3.0m)* Before non-recurring exceptional itemsOperational highlights * James Webber, Group CFO and COO, will be joining the PLC Board with immediate effect * Strong momentum in new subsidiary businesses, specifically in the growth areas of RPO solutions and social media consultancy * In the first six months of 2014, our new subsidiary businesses contributed 60 per cent more revenue to the Group than the 12 months ended 31 December 2013 * Two new senior hires in Norman Broadbent Interim Management * Completed refocusing of the Norman Broadbent brand worldwide * Streamlined the Group by selling our 51% subsidiary Norman Broadbent SPRL and mutually agreeing to end our license agreement and selling our 20 percent holding in NBS Norman Broadbent SAPierce Casey, Chairman of Norman Broadbent, said:"In the first six months of 2014 we continued to invest in growing our enhancedsuite of service offerings alongside focusing on improving profit margin in ourcore executive search business.I am pleased to report that since the period end UK executive search /leadership consulting, executive interim, RPO (within AGP) and social mediasearch are all trading and trending well, whilst we are dealing with a somewhatdisappointing performance from the traditional contingent offering of AGP.Finally, the Board is delighted to announce that James Webber, Group CFO andCOO, will be joining the PLC Board with immediate effect."These results are also available from the Company's website athttp://www.normanbroadbent.com/ .For further information please contact:Norman Broadbent plcPierce Casey/Sue O'Brien/James Webber 020 7484 0000Sanlam Securities UK LimitedSimon Clements/Virginia Bull 020 7628 2200Notes to EditorsNorman Broadbent plc is a leading provider of senior and board executive searchand leadership consultancy and assessment services. Through AGP the Group alsoprovides specialist contingent offerings, including RPO solutions. NormanBroadbent Interim Management provides a dedicated senior interim managementservice focussed on enhanced client returns on investment and long termbenefits. Connecting Corporates and Winning Work, now consolidated under theSocial Media Search brand, provides digital research to assist in houserecruitment as well as assisting professional service firms to drive sales bybespoke exploitation of social media. Headquartered in London, the Group alsohas offices in Los Angeles with a representative office in Singapore.For further information visit www.normanbroadbent.comChairman's StatementFinancial ResultsThe table below summarises the results for the Group. Six months to Six months to Year ended 30 June 30 June 31 Dec 2014 2013 2013 £000's £000's £000'sCONTINUING OPERATIONSREVENUE 3,818 3,654 6,821Cost of sale (122) (190) (162)GROSS PROFIT 3,696 3,464 6,659Operating expenses (4,091) (3,864) (7,923)Other income - 125 125GROUP OPERATING (LOSS) (395) (275) (1,139)Dividends received - - 17Net finance cost (14) (16) (31)Exceptional Items (559) - -(Loss) on disposal of investment (37) - -(LOSS) BEFORE TAX (1,005) (291) (1,153)Income tax - - (19)(Loss)/profit from discontinued (144) 33 20operation(LOSS) AFTER TAX (1,149) (258) (1,152)Revenue from continued operations for the six month period to 30 June 2014increased by 4.5 per cent to £3.8m (2013: £3.7m). UK executive search revenuedeclined by 14 per cent to £2.5m from £2.9m in the six month period to 30 June2013, but with increased profit based on high margin coupled with reducedcosts. This is highlighted by revenue per billing consultant increasing by 4per cent to £164k (2013: £157k).Group operating loss from continued operations was £0.4m (2013: £0.3m)reflecting continued investment in our start-up businesses AGP and Social MediaSearch, totalling £0.3m (2013: £0.2m).During the period the Group disposed of Norman Broadbent SPRL for £120,000 on 8May 2014, resulting in an impairment to goodwill of £112,000 in theConsolidated Statement of Financial Position, and a loss on disposal of £128,000 in the Company Statement of Financial Position.Further, on 27 May 2014, the Group sold its 20 per cent stake in NBS NormanBroadbent SA for £92,000 (20 per cent of NAV) which completed on 30 July 2014.The sale resulted in impairment to goodwill of £446,946 in the ConsolidatedStatement of Financial Position and an increase in the carrying value of theinvestment to £92,000 in the Company Statement of Financial Position.These developments have resulted in a refocused core executive search andleadership consulting business in the UK.The loss per share for the six months to 30 June 2013 was 6.68 pence comparedwith loss per share of 2.09 pence in the comparative period and adjusted lossper share was 6.54 pence compared with loss per share of 1.70 pence in 2013.Financial PositionEquity shareholders' funds were £1.7m as at 30 June 2014 (£2.8m as at 31December 2013), with net current assets of £0.2m (£0.8m as at 31 December2013). The decrease in equity shareholder funds was primarily due to animpairment to goodwill in relation to the sale of Norman Broadbent SPRL and thesale of our interest in NBS Norman Broadbent totalling £0.6m in non cashexceptional items.Cash and cash equivalents at 30 June 2014 stood at £0.2m, down from £0.6m at 31December 2013 reflecting the continued investment in the new businesses andtheir associated start-up losses. The balance on the Group's revolving invoicediscounting facility was £1.0m (£0.8m at 31 December 2013), reflecting a tradereceivables balance of £1.6m (£1.8m at 31 December 2013).The Group continues to hold no bank debt.ManagementThe Board is delighted to announce that James Webber, Group CFO and COO, willbe joining the PLC Board with immediate effect. James joined the business inMarch 2014, and his experience from his time in the COO office at EY has provedinvaluable to the Company.Current Trading and OutlookCore UK executive search / leadership consulting, executive interim, socialmedia search and RPO have all performed in line with management expectationssince the period end, and are all trending well. However, trading since theperiod end in the traditional contingent offering within AGP has beendisappointing and has required greater investment than anticipated.In light of this, the Board has decided to consider a refocusing of this aspectof our contingent offering. If such a refocusing is required certain largeshareholders have indicated their support.The outlook for the remainder of 2014 and 2015 is positive.Pierce CaseyChairmanCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the six month period ended 30 June 2014 Note Six months Six months Year ended ended ended 31 30 June 30 June December 2014 2013 2013 (unaudited) (unaudited) (audited) £000 £000 £000CONTINUING OPERATIONSREVENUE 3,818 3,654 6,821Cost of Sales (122) (190) (162)GROSS PROFIT 3,696 3,464 6,659Operating expenses (4,091) (3,864) (7,923)Other Income - 125 125GROUP OPERATING LOSS (395) (275) (1,139)Dividends received - - 17Net finance cost (14) (16) (31)Exceptional 7 (559) - -Items(Loss) on disposal of (37) - -investmentLOSS ON ORDINARY ACTIVITIES (1,005) (291) (1,153)BEFORE INCOME TAXIncome tax expense - - (19)LOSS FROM CONTINUING OPERATIONS (1,005) (291) (1,172)DISCONTINUED OPERATIONSProfit/(loss) from discontinued 8 (144) 33 20operationLOSS FOR THE PERIOD (1,149) (258) (1,152)OTHER COMPREHENSIVE INCOMEForeign currency translation (11) - (12)differences - foreignoperationsTOTAL COMPREHENSIVE INCOME (1,160) (258) (1,164)Loss attributable to:Owners of the Company (989) (272) (1,050)Non-controlling interests (160) 14 (102)(Loss) for the period (1,149) (258) (1,152)Total comprehensive incomeattributable to:Owners of the Company (1,000) (272) (1,062)Non-controlling interests (160) 14 (102)Total comprehensive income for (1,160) (258) (1,164)the periodLoss per share- Basic (6.68p) (2.09p) (7.85p)- Diluted (6.68p) (2.09p) (7.85p)Adjusted loss per share- Basic (6.54p) (1.70p) (7.40p)- Diluted (6.54p) (1.70p) (7.40p)Loss per share - continuingoperations- Basic (6.26p) (2.19p) (7.92p)- Diluted (6.26p) (2.19p) (7.92p)Adjusted loss per share -continuing operations- Basic (6.12p) (1.80p) (7.48p)- Diluted (6.12p) (1.80p) (7.48p)CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 30 June 2014 Note As at As at As at 30 June 30 June 31 December 2014 2013 2013 (unaudited) (unaudited) (audited) £000 £000 £000Non-Current AssetsIntangible Assets 1,455 1,922 1,922Property, plant and equipment 121 197 172Deferred Tax 69 69 69TOTAL NON-CURRENT ASSETS 1,645 2,188 2,163Current AssetsTrade and other receivables 2,336 2,314 2,339Cash and cash equivalents 238 596 579TOTAL CURRENT ASSETS 2,574 2,910 2,918TOTAL ASSETS 4,219 5,098 5,081Current LiabilitiesTrade and other payables (1,374) (1,116) (1,333)Deferred consideration - - -Invoice discounting facilities (989) (753) (802)drawnCorporation tax liability - (93) (21)TOTAL CURRENT LIABILITIES (2,363) (1,962) (2,156)NET CURRENT ASSETS 211 948 762Non-current liabilitiesProvisions 6 (125) (125) (125)TOTAL LIABILITIES (2,488) (2,087) (2,281)TOTAL ASSETS LESS TOTAL 1,731 3,011 2,800LIABILITIESEquityIssued share capital 5,875 5,857 5,875Share premium account 10,238 9,570 10,238Retained earnings (14,180) (12,575) (13,356)Equity attributable to owners 1,933 2,852 2,757of the CompanyNon-controlling interests (202) 159 43TOTAL EQUITY 1,731 3,011 2,800CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the six month period ended 30 June 2014 Attributable to owners of the CompanyCONSOLIDATED GROUP Share Share Retained Total Non-controlling Total Capital Premium Earnings Equity interests Equity £000 £000 £000 £000 £000 £000Balance at 1stJanuary 2013 5,857 9,572 (12,353) 3,076 145 3,221Loss for the period 0 0 (272) (272) 14 (258)Total other comprehensive 0 0 0 0 0 0incomeTotal comprehensive income - - (272) (272) 14 (258)for the periodTransactions with owners of the Company,recognised directly in equity:Issue of ordinary shares 0 (2) 0 (2) 0 (2)Credit to equity for share 0 0 50 50 0 50based paymentsTotal transactions with - (2) 50 48 - 48owners of the Company,recognised directly inequityBalance at 30 June 2013 5,857 9,570 (12,575) 2,852 159 3,011Balance at 1stJuly 2013 5,857 9,570 (12,575) 2,852 159 3,011Loss for the period - - (778) (778) (116) (894)Total other comprehensive - - (12) (12) - (12)incomeTotal comprehensive income - - (790) (790) (116) (906)for the periodTransactions with owners of the Company,recognised directly in equity:Issue of ordinary shares 18 668 - 686 - 686Credit to equity for share 0 - 9 9 - 9based paymentsTotal transactions with 18 668 9 695 0 695owners of the Company,recognised directly inequityBalance at 31stDecember 5,875 10,238 (13,356) 2,757 43 2,8002013Balance at 1stJanuary 2014 5,875 10,238 (13,356) 2,757 43 2,800Loss for the period - - (989) (989) (160) (1,149)Adjustment for - - - - 70 70discontinued operationTotal other comprehensive - - (11) (11) - (11)incomeTotal comprehensive income - - (1,000) (1,000) (90) (1,090)for the periodTransactions with owners of the Company,recognised directly in equity:Issue of ordinary shares - - - - - -Credit to equity for share - - 21 21 - 21based paymentsTotal transactions with 0 0 21 21 - 21owners of the Company,recognised directly inequityChanges in ownershipinterest in subsidiariesDisposal of 0 0 155 155 (155) 0non-controlling interestswith change of controlTotal transactions with - - 176 176 (155) 21owners of the companyBalance at 30 June 2014 5,875 10,238 (14,180) 1,933 (202) 1,731CONSOLIDATED STATEMENT OF CASH FLOWFor the six month period ended 30 June 2014 Note Six months Six months Year ended ended ended 31 30 June 30 June December 2014 2013 2013 (unaudited)(unaudited) (audited) £000 £000 £000Net cash used in operating activities (i) (468) (8) (731)Cash flows from investing activitiesand servicing of financeNet finance cost (14) (16) (31)Dividends received - - 17Payments to acquire tangible fixed (14) (102) (122)assetsDisposal of discontinued operation, 8 (23) -net of cash disposed ofRepayment of deferred consideration - (73) (73)Net cash used in investing activities (51) (191) (209)Cash flows from financing activitiesNet cash inflows from equity placing - (2) 684Increase/(decrease) in invoice 187 (212) (163)discountingNet cash from financing activities 187 (214) 521Net (decrease)/increase in cash and (332) (413) (419)cash equivalentsNet cash and cash equivalents at 579 1,009 1,009beginning of periodEffects of exchange rate changes on (9) - (11)cash balances held in foreigncurrenciesNet cash and cash equivalents at end of 238 596 579periodAnalysis of net fundsCash and cash equivalents 238 596 579Borrowings due within one year (989) (753) (802)Deferred consideration - - -Net funds (751) (157) (223)Note (i)Reconciliation of operating profit to Six months Six months Yearnet cash from operating activities ended 30 ended 30 ended 31 June June December 2014 2013 2013 (unaudited) (unaudited) (audited)Operating (loss) (497) (221) (1,070)Depreciation/ impairment of property, 38 45 89plant and equipmentShare based payment charge 21 50 59Increase in trade and other (173) (48) (71)receivablesIncrease in trade and other payables 164 41 258Increase in provisions 6 - 125 125Taxation paid (21) - (121)Net cash used in operating activities (468) (8) (731)NOTES TO THE FINACIAL STATEMENTS 1. ACCOUNTING POLICIES 1.1 Basis of preparationThe financial information set out in this interim report does not constitutestatutory accounts as defined in Section 434 of the Companies Act 2006. TheGroup's statutory financial statements for the year ended 31 December 2013,prepared under International Financial Reporting Standards (IFRS), have beenfiled with the Registrar of Companies. The auditor's report on those statementswas unqualified.The interim financial information for the six months ended 30 June 2014, hasbeen prepared in accordance with the AIM Rules for Companies. The Group has notelected to apply IAS 34 `Interim Financial Reporting'. The principal accountingpolicies used in preparing the interim results are those the Group expects toapply in its financial statements for the year ending 31 December 2014 and areunchanged from those disclosed in the Group's Annual Report for the year ended31 December 2013. The interim financial statements have not been audited. 1.2 Basis of consolidation and business combinationsThe Group financial statements consolidate those of the Company and of thefollowing subsidiary undertakings:Principal Group investments: Country of Principal Description and incorporation activities proportion of or registration shares held by and operation the CompanyNorman Broadbent Executive England and Executive 100 per centSearch Ltd Wales search ordinary sharesNorman Broadbent Overseas Ltd England and Executive 100 per cent Wales search ordinary sharesNorman Broadbent Leadership England and Assessment, 100 per centConsulting Ltd (formerly Wales coaching and ordinary sharesHuman Asset Development talent mgmt.International Ltd)AGP NB Ltd (formerly NBBI England and Contingent 100 per centLtd) Wales Search ordinary sharesThe NB Consultancy Republic of Executive 100 per cent(Singapore) Pte Ltd Singapore Search ordinary sharesNorman Broadbent Inc United States Executive 100 per cent of America Search ordinary sharesNorman Broadbent SPRL Belgium Executive 51 per cent(formerly Acker Deboeck and search, ordinary sharesCompany) * assessment, coaching and talent mgmt.Norman Broadbent (Ireland) Republic of Dormant 100 per centLtd *** Ireland ordinary sharesConnecting Corporates Ltd England and Social Media 51 per cent Wales Search and ordinary shares ConsultingBancomm Ltd England and Dormant 100 per cent Wales ordinary sharesSubstantial Shareholdings:NBS Norman Broadbent SA** Spain Executive 20 per cent Search ordinary shares* The 51 per cent shareholding in this company was sold to existing managementon 8 May 2014.** The 20 per cent shareholding in this company was owned by Norman BroadbentOverseas Ltd, a wholly owned subsidiary of the Company. The shareholding wassold on 30 July 2014.*** 100 per cent of the issued share capital of this company is owned by NormanBroadbent Overseas Ltd. 2. COPIES OF THE UNAUDITED INTERIM REPORTCopies of this report are available on request from the Company's registeredoffice at 12 St James's Square, London, SW1Y 4LB and are also available on theCompany's website at www.normanbroadbent.com.3. SEGMENTAL ANALYSISManagement has determined the operating segments based on the reports reviewedregularly by the Board for use in deciding how to allocate resources and inassessing performance. The Board considers Group operations from both a classof business and geographic perspective.Each class of business derives its revenues from the supply of a particularrecruitment related service, from retained executive search through toexecutive assessment and coaching. Business segment results are reviewedprimarily to operating profit level, which includes employee costs, marketing,office and accommodation costs and appropriate recharges for management time.Group revenues are primarily driven from UK operations, however when revenue isderived from overseas business the results are presented to the Board bygeographic region to identify potential areas for growth or those posingpotential risks to the Group.i) Class of Business:The analysis by class of business of the Group's turnover, profit beforetaxation and net assets/(liabilities) is set out below: BUSINESS SEGMENTSSix months Executive Overseas AGP Assessment, Social Discontinued Unallocated Totalended 30 June Search Royalties Limited Coaching & Media Operation £000 £0002014 £000 £000 £000 Talent Search £000 Mgmt. £000 £000Revenue 2,618 67 624 234 275 120 - 3,938Cost of sales (5) - (94) (21) (2) (45) - (167)Gross profit 2,613 67 530 213 273 75 - 3,771Operating (2,405) (8) (629) (313) (459) (173) (242) (4,229)expensesOther - - - - - - - -operatingincomeFinance costs (12) - (3) - - - - (15)Depreciation (30) - (2) - (2) (4) - (38)andamortisationExceptional - - - - - (42) (559) (601)ItemsProfit on - - - - - - (37) (37)disposal ofInvestmentProfit before 166 59 (104) (100) (188) (144) (838) (1,149)taxNet assets 3,896 - (609) (549) (411) - (596) 1,731 BUSINESS SEGMENTSSix months Executive Overseas AGP Assessment, Social Discontinued Unallocated Totalended 30 June Search Royalties Limited Coaching & Media Operation £000 £0002013 £000 £000 £000 Talent Search £000 Mgmt. £000 £000Revenue 3,125 126 18 242 144 355 - 4,010Cost of sales (147) - (1) (40) (3) (114) - (305)Gross profit 2,978 126 17 202 141 241 - 3,705Operating (2,905) (48) (215) (326) (173) (187) (157) (4,011)expensesOther 125 - - - - - - 125operatingincomeFinance costs (16) - - - - - - (16)Depreciation (39) - - - (1) - - (40)andamortisationExceptional - - - - - - -ItemsProfit on - - - - - - -disposal ofInvestmentProfit before 143 78 (198) (124) (33) 54 (157) (237)taxNet assets 3,117 - (175) (291) (9) 369 - 3,011 BUSINESS SEGMENTSYear ended 31 Executive Overseas AGP Assessment, Social Discontinued Unallocated TotalDecember 2013 Search Royalties Limited Coaching & Media Operation £000 £000 £000 £000 £000 Talent Search £000 Mgmt. £000 £000Revenue 5,586 212 252 467 304 730 - 7,551Cost of sales (101) - (1) (57) (3) (230) - (392)Gross profit 5,485 212 251 410 301 500 - 7,159Operating (5,591) (107) (674) (648) (512) (420) (313) (8,265)expensesOther 142 - - - - - - 142operatingincomeFinance costs (31) - (1) - - 2 - (30)Depreciation (73) - (3) - (2) (11) - (89)andamortisationExceptional - - - - - - - -ItemsProfit on - - - - - - - -disposal ofInvestmentProfit before (68) 105 (427) (238) (213) 71 (313) (1,082)taxNet assets 3,577 - (470) (430) (229) 352 - 2,800 2ii) Geographic Region:The analysis by geographic region of the Group's turnover, profit beforetaxation and net assets/(liabilities) is set out below: BUSINESS SEGMENTSSix month Executive Overseas AGP Assessment, Social Discontinued Unallocated Totalperiod Search Royalties £000 Coaching & Media Operation £000 £000ended 30 £000 £000 Talent Search £000June 2014 Mgmt. £000 £000RevenueUnited 2,488 - 584 234 275 - - 3,581KingdomEurope 27 67 40 - - 120 - 254Other 103 - - - - - 103Total 2,618 67 624 234 275 120 - 3,938GrossprofitUnited 2,483 - 489 213 273 - - 3,458KingdomEurope 27 67 41 - - 75 - 210Other 103 - - - - - - 103Total 2,613 67 530 213 273 75 - 3,771Profit/(Loss)beforetaxUnited 223 - (104) (100) (188) - (243) (412)KingdomEurope - 59 - - - (144) (595) (680)Other (57) - - - - - - (57)Total 166 59 (104) (100) (188) (144) (838) (1,149)NetassetsUnited 4,068 - (609) (549) (229) - (596) 2,085KingdomEurope - - - - - - - -Other (354) - - - - - - (354)Total 3,714 - (609) (549) (229) - (596) 1,731 BUSINESS SEGMENTSSix month Executive Overseas AGP Assessment, Social Discontinued Unallocated Totalperiod Search Royalties £000 Coaching & Media Operation £000 £000ended 30 £000 £000 Talent Search £000June 2013 Mgmt. £000 £000RevenueUnited 2,885 - 18 242 144 - - 3,289KingdomEurope 30 104 - - - 355 - 489Other 210 22 - - - - - 232Total 3,125 126 18 242 144 355 - 4,010GrossprofitUnited 2,774 - 17 202 141 - - 3,134KingdomEurope 30 104 - - - 241 - 375Other 174 22 - - - - - 196Total 2,978 126 17 202 141 241 - 3,705Profit/(Loss)before taxUnited 206 - (198) (124) (33) - (157) (306)KingdomEurope - 57 - - - 54 - 111Other (63) 21 - - - - - (42)Total 143 78 (198) (124) (33) 54 (157) (237)Net assetsUnited 3,292 - (175) (291) (9) - - 2,817KingdomEurope - - - - - 369 - 369Other (175) - - - - - - (175)Total 3,117 - (175) (291) (9) 369 - 3,011 BUSINESS SEGMENTSYear ended Executive Overseas AGP Assessment, Social Discontinued Unallocated Total31 December Search Royalties £000 Coaching & Media Operation £000 £0002013 £000 £000 Talent Search £000 Mgmt. £000 £000RevenueUnited 5,409 - 238 461 304 - - 6,412KingdomEurope - 194 14 - - 730 - 938Other 177 18 - 6 - - - 201Total 5,586 212 252 467 304 730 - 7,551GrossprofitUnited 5,351 - 237 410 301 - - 6,299KingdomEurope - 194 14 - - 500 - 708Other 134 18 - - - - - 152Total 5,485 212 251 410 301 500 - 7,159Profit/(Loss)before taxUnited 141 - (427) (238) (213) - (313) (1,050)KingdomEurope - 105 - - - 71 - 176Other (209) - - - - - - (209)Total (68) 105 (427) (238) (213) 71 (313) (1,082)Net assetsUnited 3,577 - (470) (430) (229) 352 - 2,800KingdomTotal 3,577 - (470) (430) (229) 352 - 2,800Turnover by location is not materially different from turnover by destination.The unallocated costs refer to central costs of the Group including salaries,professional and other costs, which are not directly attributable to thedelivery of the services. The four segments shown represent the managementinformation provided to the Board and in the opinion of the directors reflectthe nature of the Group's services. 4. EQUITY SECURITIES ISSUEDDuring the six month period ended 30 June 2014 no equity securities wereissued. During the six month period ended 30 June 2013 no equity securitieswere issued.Issue of ordinary shares during Six months Six months Year endedthe period ended 30 June ended 30 June 31 December 2014 2013 2013 (unaudited) (unaudited) (audited) Shares Value Shares Value Shares Value 000's £000 000's £000 000's £000Issue of shares on acquisition - - - - - -Issue of shares for cash - - - - 1,750 700Total - - - - 1,750 700 5. earnings PER ORDINARY SHARE i. Basic earnings per share:This is calculated by dividing the profit attributable to equity holders of thecompany by the weighted average number of ordinary shares in issue during theperiod: Six months Six months Year ended 30 ended 30 ended 31 June 2014 June 2013 December 2013 (unaudited) (unaudited) (audited)(Loss) attributable to £(989,000) £(272,000) £(1,050,000)shareholdersWeighted average number of 14,798,686 13,048,686 13,385,224ordinary sharesii) Diluted earnings per share:This is calculated by adjusting the weighted average number of ordinary sharesoutstanding to assume conversion of all dilutive potential ordinary shares. Thecompany has two categories of dilutive potential ordinary shares; share optionsand warrants. For these options and warrants, a calculation is done todetermine the number of shares that could have been acquired at fair value(determined as the average annual market share price of the company's shares)based on the monetary value of the subscription rights attached to theoutstanding warrants and options. The number of shares calculated as above iscompared with the number of shares that would have been issued assuming theexercise of the share options. Six months Six months Year ended ended 30 ended 30 31 December June 2014 June 2013 2013 (unaudited) (unaudited) (audited)(Loss) attributable to shareholders £(989,000) £(272,000) £(1,050,000)Weighted average no. of ordinary shares 14,798,686 13,048,686 13,385,224- assumed conversion of share options - - -- assumed conversion of warrants - - -Weighted average number of ordinary shares 14,798,686 13,048,686 13,385,224for diluted earnings per shareiii) Adjusted earnings per shareAdjusted earnings per share has also been calculated in addition to the basicand diluted earnings per share and is based on earnings adjusted to eliminatethe effects of impairment of intangibles and charges for share based payments.It has been calculated to allow shareholders to gain a clearer understanding ofthe trading performance of the Group. Six months ended 30 Six months ended 30 Year ended 31 June 2014 June 2013 December 2013 £000 Basic Diluted £000 Basic Diluted £000 Basic Diluted pence pence pence pence pence pence per per per per per per share share share share share shareBasicearnings(Loss) (989) (6.68) (6.68) (272) (2.09) (2.09) (1,050) (7.85) (7.85)after taxAdjustmentShare based 21 0.14 0.14 50 0.38 0.38 60 0.45 0.45paymentchargeAdjusted (968) (6.54) (6.54) (222) (1.70) (1.70) (990) (7.40) (7.40)earnings 6. PROVISIONS Six months ended Six months Year ended 30 June 2014 ended 30 31 December June 2013 2013 £000 £000 £000Balance at beginning of period 125 - -Provisions made during the period - 125 125Balance at end of period 125 125 125Non-current 125 125 125Current - - - 125 125 125During the previous period the Company signed a new ten year lease with a fiveyear break for its main office in London. On signing the new lease the Companyinherited the office fit-out from the previous tenant. Under the terms of thenew lease the Company is obliged to return vacant possession to the landlordwith the office returned to its original state. The Company has had the presentcost of the future works required to return the office to its original statevalued by an independent firm of advisors and this non-current liability of £125,000 has been provided for in the financial period. 7. EXCEPTIONAL ITEMS Six months Six months Year ended ended 30 ended 30 31 December June 2014 June 2013 2013 £000 £000 £000Goodwill impairment Norman Broadbent SPRL 112 - -Goodwill impairment NB Norman Broadbent 447 - -SAWrite off of investment in Norman 42Broadbent SASBalance at end of period 601 - - 8. DISCONTINUED OPERATIONOn 8 May 2014, the Group sold its 51 per cent stake in Norman Broadbent SPRLfor £120,000 (compared to a cash investment of £135,000) to existingmanagement. Norman Broadbent SPRL owned 100 per cent of the issued sharecapital of Norman Broadbent S.A.S, which was liquidated in February 2014. Thesegment was not a discontinued operation or classified as held for sale at 31December 2013 and the comparative consolidated statement of comprehensiveincome has been re-presented to show the discontinued operation separately fromcontinued operations. Six months Six months Year ended ended 30 ended 30 31 December June 2014 June 2013 2013 (unaudited) (unaudited) (audited) £000 £000 £000Results from discontinuedoperationRevenue 120 355 730Operating Expenses (222) (301) (659)Results from operating (102) 54 71activitiesExceptional items (42) - -Tax - (21) (51)Results from operating (144) 33 20activities, net of taxMinority Interest 70 (20) (10)Loss/Profit for the period (74) 13 10Loss per share- Basic (0.42p) 0.10p 0.07p- Diluted (0.42p) 0.10p 0.07p 8. DISCONTINUED OPERATION (CONT.)Effect of disposal on the financial position of the Group Six months ended 30 June 2014 (unaudited)) £000Property, plant and equipment 23Trade and other receivables 126Cash and cash equivalents * 135Trade and other payables (48)Net assets and liabilities 236Consideration received, satisfied in 120cashCash and Cash equivalents disposed (135)ofNet cash outflow (15)* Excludes cash balance of £8,000from the liquidated position ofNorman Broadbent SAS. 9. RELATED PARTY TRANSACTIONS i. Purchase of services: Six months Six months Year ended ended 30 ended 30 31 June 2014 June 2013 December 2013 £000 £000 £000Adelaide Capital Limited 25 52 52Anderson Barrowcliff LLP 6 8 14Brian Stephens & Company Ltd 17 11 22Connecting Corporates 12 - 11NBS Norman Broadbent SA - 14 14Total 60 85 113Adelaide Capital Limited invoiced the Group for the services of P Casey (£25,000). P Casey is a director of Adelaide Capital Limited. Brian Stephens &Company Ltd invoiced the Group for the directors' fees and corporate financeservices of B Stephens (£16,000) and business related travel costs of £1,000. BStephens is a director of Brian Stephens & Company Ltd.Taxation and company secretarial services of £6,000 were acquired from AndersonBarrowcliff LLP, an accountancy firm of which R Robinson is a partner.During the period the Group acquired research services from ConnectingCorporates Limited £12,000. The Group owns a 51 per cent stake in ConnectingCorporates Limited.All related party expenditure took place via "arms-length" transactions.ii. Sales of services: Six months Six months Year ended ended 30 ended 30 31 June 2014 June 2013 December 2013 £000 £000 £000Connecting Corporates 35 15 42NBS Norman Broadbent SA 67 80 175Total 102 95 217During the period the Company invoiced NBS Norman Broadbent SA for royaltyincome (£67,000).During the period the Group recharged group services incurred for the benefitof Connecting Corporates Limited to Connecting Corporates Limited at cost £35,000.iii. Period-end payables arising from the Six months Six months Year ended purchases of services: ended 30 ended 30 31 June 2014 June 2013 December 2013 £000 £000 £000Adelaide Capital Limited 5 10 -Anderson Barrowcliff LLP 6 2 -Brian Stephens & Company Ltd 3 4 6NBS Norman Broadbent SA 0 14 -Total 14 30 6The payables to related parties arise from purchase transactions and are dueone month after date of purchase. The payables bear no interest.