Last year, the financial turbulence and uncertainty in the world continued but MU again demonstrated our strength and sustained development. We successfully completed our transition into the Executive Search and Leadership Advisory segment, and launched improved client offerings, securing that clients will acquire and develop the leadership they need.
In 2024, our client offerings were further strengthened. The MU Executive Search™ was successfully launched as an inclusive and highly effective MU Service for leader recruitment and selection. As all MU Services, it is based on the MU way of working, MU Leader Selection Science®. The MU Executive Search™ is based on the latest scientific developments in our field and ensures that clients benefit from the assistance of MU in leadership recruitment and selection. This enhancement underlines our continuous development of proven MU Services, Methods and Tools to ensure effective solutions meeting the clients’ needs for successful leaders. The work to develop our services, as well as validation and success-rate follow up, is run by the independent MU Research Institute (MU RI). The development and validation work provided by MU RI is together with the deliveries of certified MU Experts the core behind every promise we make to clients.
2024 saw MU strengthen its profit performance and complete its transformation into the Executive Search and Leadership Advisory segment.
MU Experts worldwide continued to increase the value and so fee level of our work with clients, and clients responded with excellent client satisfaction feedback.
Underpinning our strategic achievements in 2024:
Despite a sustained challenging trading environment, MU profit result in 2024 was better than in 2023. Considering the market conditions, an Adjusted EBITDA margin of 9.9% is rather strong and a net margin after tax of 5.5% means solid dividends for our equity partners.
2024 proved to be another year of instability in the world. This led to a reduced volume of permanent placements across most industries and geographies. The company’s revenues by service line were mixed, with a strong performance in leadership level work, Executive Search and Advisory services, and large drops on lower value and lower fee recruitment work. Overall, again in 2024, average fee levels increased and new hired MU Experts <24m showed impressive results (16% ahead of 2023). Whilst this development of high-value work and the strong performance of our new team members is in line with our strategy, an overall reduction in net sales of 7% was below expectations.
In the coming year, with our strategic transformation completed we will focus fully on providing our industry-leading capabilities to clients. Our strength allows us to carefully and selectively welcome exceptional new talent to our team — as employees, associates and affiliated partner firms.
Our relentless focus on client needs, exceptional MU Experts and industry-leading services, method and tools form the base for the continued increasing strength of MU.
Acquiring and improving leadership that is diverse and performs effectively is the greatest challenge organisations face — and the only way they can sustainably outperform. To serve our clients even better, the key focus areas for management in 2025 are:
With our transformation completed, the MU team looks forward to fully focusing on client sales, client care and client development work. At the same time, as every year, further strengthening our industry leading quality assurance and certification regime for MU Experts: Focus on the scientific basis for predicting leader success, and inclusion and diversity.