Nakama Group plc (AIM: NAK), the AIM quoted recruitment consultancy working across UK and Asia, providing recruitment services for the web, interactive, digital media, IT and business change sectors, announces its half year report for the six months ended 30 September 2020.
· The Group has experienced unprecedented trading conditions in H1 2020 due to the impact of the COVID 19 pandemic
· Net fee income ("NFI") of £0.83m (H1 2019: £1.5m)
· Permanent placement revenues of £0.49m (H1 2019: £1m)
· Contractor revenues were £2.65m (H1 2019: £3.7m)
· Overall headcount reduced by 31% to 27, reducing the Company's cost base
· Loss before tax of £99k (H1 2019: profit of £20k)
· The Group has taken advantage of various government support schemes in the UK and elsewhere but has failed to raise additional capital (debt or equity) to allow the business to continue trading in the medium term
· Proposed sale of the Company's operating businesses to Sanderson Group announced on 9 December 2020
Robert Thesiger, Chief Executive Officer of Nakama Group, commented: "2020 has been an unprecedented year with the onset of a global pandemic and as such the business has seen a marked decrease in trading across all of its geographical locations. The health and safety of all our staff and clients has been of paramount importance and I would like to thank all our staff for their sterling efforts during this time"
"On 9 December we announced the sale of our trading businesses to Sanderson and this will allow them to grow under a well-capitalised parent. I believe this disposal is in the best interests of our clients and staff. Nakama will, should the proposed disposal be approved by shareholders, become an AIM cash shell and we will update shareholders on our plans in due course."