Nakama Group plc Strengthens Its Global Position
· Profit before tax £169,000 (2014: profit £222,000)
· Net fee income (NFI) rose by 11% to £3.0 million (2014: £2.7 million)
· NFI increased to 28% (2014: 25%)
· Permanent recruitment fees increased by 32.1% to £1.75 million (2014: £1.33 million)
· Revenue across the APAC region increased by 18.4%*
On constant currency the increase would have been 27%
Rob Sheffield, CEO of Nakama, commented:
"Since September we have conducted a widespread review of all Group operations with a specific emphasis on sales. The Group strategy for growth in all regions is a key focus aligning all offices and enabling the business to grow globally".
Nakama provides a range of specialist recruitment services to its clients, providing staff for the Web, Interactive, Digital Media, IT and Business Change sectors through the placement of contract and permanent staff across the UK, Europe, Asia and Australia.
The Group revenue of £10.6 million (2014: £11.1 million) shows a small decrease but with an increase in Net Fee Income (NFI) to £3.0 million (2014: £2.7 million). As a percentage of Revenue, NFI increased to 28 per cent. (2014: 25 per cent).
Segmental analysis shows that we have increased our revenue in the APAC region whilst UK revenues have decreased slightly. We have seen NFI increase due to a shift away from low margin contract business to higher permanent placements ("Perm") in our specialist sectors. Staff levels across the Group have risen in all offices which is reflected in an increased staff cost.
We are currently in line with our expectations for the first half of the year and we anticipate no significant changes in trading in the second half. The business continues to focus on quality of service and the professional delivery of our products to our customers. A key focus is to continue to improve contract margins and drive Perm revenues whilst growing our headcount and providing industry specific training. We have seen some impact by Foreign Exchange losses on revaluation of intercompany debt for the first half of the year (£37k).