Connecting to LinkedIn...

Blank

Nakama Group PLC Rebuilding For 2013/2014

Nakama Group PLC – Rebuilding For 2013/2014

Preliminary Results For the year ended 31 March 2013

&middot     Group revenue increased by 25 per cent. to &pound16.7m (2012: &pound13.3m) for our first full year since the acquisition of Nakama in October 2011

&middot     PBTAE*  &pound9,000 (2012: &pound128,000)

&middot     Group loss before taxation &pound219,000 (2012: Loss &pound180,000)

&middot     Gross profit improved by 45 per cent. to &pound3.98m (2012: &pound2.74m)

&middot     Profit margins increased again to 24 per cent. (2012: 20 per cent.)

&middot     Net Assets &pound1,784m (2012: &pound1,969m)

&middot     Net Borrowing &pound0.764m (2012: &pound1,058m)

&middot     Finance costs have been halved to &pound45k (2012: &pound95k)

&middot     No dividend recommended, but a resumption in dividend payments will be kept under review

* PBTAE - Profit before tax, amortisation and exceptional items

Operational

&middot     New offices opened in Singapore and Munich in the period

&middot     Restructuring in the Hong Kong and Sydney offices

&middot     Cost savings in back office integration

&middot     Contractors on clients' sites and permanent placements remain stable

&middot     Global networks increasing blue chip client base

&middot     New Board structure with Paul Goodship and Rob Sheffield appointed on 10 June 2013

Ken Ford, Chairman of Nakama, commented: "Our strategy is to build from a strong base in the UK and expand both in our specialist areas internationally and into targeted developing markets.  London is a global leader in many of our chosen market sectors and provides a strong hub from which to develop an international client base. Digital media recruitment both into agencies and into corporate marketing departments continues to grow and Highams' traditional business providing technology, business and professional services to the insurance and financial services sector remains firm and increasingly digital."

"The recent additions to the Board of Rob Sheffield and Paul Goodship, two founders of Nakama Limited bring continuity of drive and knowledge to the building of the Nakama brand, The Board looks to the 2013/2014 year as one in which it will work to increase turnover and results from the strengthened infrastructure and new offices now in place."

Chairman's Statement

Introduction

Nakama provides a full range of specialist recruitment services to its clients, providing staff for the Web, Interactive, IT and Digital Media sectors through the placement of contract and permanent staff across the UK, Europe, Asia and Australia.

The results for the full year results to 31 March 2013 were disappointing although revenue increased by 25 per cent., with a full year of figures included since the acquisition of Nakama in October 2011.

The company has strengthened its infrastructure during the year under review opening offices in Singapore and Munich. The company's network of proven managers provides the Group with the potential to grow in future years.

Strategy

Our strategy is to build from a strong base in the UK and expand both in our specialist areas internationally and into targeted developing markets.  London is a global leader in many of our chosen market sectors and provides a strong hub from which to develop an international client base. Digital media recruitment both into agencies and into corporate marketing departments continues to grow and Highams' traditional business providing technology, business and professional services to the insurance and financial services sector remains firm and increasingly digital.

We are always looking to recruit further excellent, driven individuals to enhance the current team globally to meet the needs of our clients and delivery of our specialist services. We believe that the Nakama Group offering and quality of our service is based upon our staff's deep understanding and knowledge of our clients' requirements and their markets.

We are focussed on growing each office organically to ensure we are making full use of the infrastructure we have now built.  We will continue to look at other opportunities to grow by acquisition of teams or companies.

Financial Results

Group revenue increased by 25 per cent. to &pound16.7m (2012: &pound13.3m), for our first full year since the acquisition of Nakama Ltd in October 2011. Gross profit improved by 45 per cent. to &pound3.98m (2012: &pound2.74m), with gross margin increased again to 24 per cent (2012: 20 per cent).

The operating profit before amortisation, tax and exceptional items was &pound9,000 (2012: profit of &pound128,000), The disappointing result mainly reflects the Hong Kong office issues reported in our half year results in November 2012, whereby the Board was alerted that a significant misappropriation of company funds and misreporting to cover poor trading had arisen. We also restructured our Australia offices, strengthening the teams there and incurred costs in relation to opening new offices. The Directors are not recommending the payment of a final dividend for the year to 31 March 2013 (2012: nil), but a resumption in dividend payments will be kept under review.

Executives and Staff

We remain a strong team of very knowledgeable long serving staff and we look forward to continuing to build the new Nakama Group. I would like to acknowledge the loyalty and commitment of all the staff to the Group and I am extremely grateful for their efforts. Again I extend a very warm welcome to all new members of the team and I look forward to their development and the future success of Nakama. Since the year end Stefan Ciecierski has left the Board and we wish him well. The recent additions to the Board of Rob Sheffield and Paul Goodship, two founders of Nakama Limited bring continuity of drive and knowledge to the building of the Nakama brand.

Outlook

Trading in the first quarter since the year end has been in line with our expectations we continue to focus on ensuring continuity of performance in each office location with the UK continuing to deliver consistently and APAC benefiting from increased staff levels and improving performance on revenues and results. The Board looks to the 2013/2014 year as one in which it will work to increase turnover and results from the strengthened infrastructure and new offices now in place.

Tags:

Articles similar to

Articles similar to