Nakama Group PLC Preliminary Results
Nakama Group PLC – Preliminary Results
"The AIM quoted recruitment consultancy working across UK, Europe, Asia and Australia providing staff for the Web, Interactive, IT and Digital media sectors"
Group revenue increased by 47per cent. to £13.3m (2011: £9m) primarily reflecting additional revenue following the acquisition of Nakama in Oct 2011
Operating profit before exceptional items, amortisation and depreciation was £232,000 (2011: £321,000)
Group loss before taxation £180,000 (2011: Profit £303,000)
Net fee income (NFI) improved by 68 per cent. to £2.74m (2011: £1.63m)
Profit margins increased again to 20 per cent. (2011: 18 per cent.)
No dividend recommended, but a resumption in future dividend payments will be kept under review
Acquisition of Nakama and name change - integration progressing well
Locations in Asia and Australia added through acquisition
New specialisation in online and digital markets added through acquisition
Contractors on site and permanent placements increasing overall
Increase in new clients in specialist areas.
Integration of both companies’ back office functions completed and will show cost savings in the current year
Ken Ford, Chairman of Nakama, commented: “I am pleased by the merger of Highams and Nakama and the substantial progress seen during the year in terms of integration and increased sales to create the Nakama Group plc and the subsequent appointment of Stefan Ciecierski as Group Chief Executive. The next year will see a full year contribution from Nakama and a contribution from recently opened businesses such as Singapore and Nakama Search, as well as many new staff, recently recruited. We look forward to continuing progress over the coming financial year, which should be reflected in an improved financial performance.”
The Board would also like to comment on current trading. As at the end of July 2012, Nakama has seen strong progress across a number of fronts during this new financial year and the Board is pleased to report that operating profit before exceptional items, amortisation and depreciation during the first 4 months of the current period is predicted to be close tothat achieved during the whole of the last financial year (operating profit before exceptional items, amortisation and depreciation 2012: £232,000).
With our new office opening in Singapore in April this year and with the Group seeing much of its growth coming from successful hiring early in the period, the Board believes that the company’s infrastructure can support many more consultants than it currently does at present, but without a corresponding and marked increase in its cost base. The current year has started positively and in spite of the poor general economic outlook, the Group looks to the future with growing confidence.
The increase in the demand for social media site development and content as well as the growth of social media on mobile is driving recruitment volumes in all Nakama locations and will help drive the Group'sstrategy over the next few years.