Nakama reports increased income and placement revenue
AIM-quoted recruitment consultancy company Nakama Group has reported increased net fee income and permanent placement revenue as the company's restructuring nears completion.
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According to Nakama, net fee income increased to £2.7m for the six months ended 30 September 2017, from £2.9m in the comparable period of the previous year.
That was in addition to the 11% increase in permanent placement revenue to £1.7m during that period.
In contrast, contractor revenue decreased by 30% to £6.5m, as losses before tax widened to £437,000 from £63,000.
Angus Watson, CFO and interim CEO of Nakama, commented: "The results for the first six months are disappointing and it has taken longer than expected to see the benefits from the changes to the business that have taken place in past months. The restructuring of the Group though is now almost complete and we are in a better position going forward and are able to feel more confident about the future.
"In June 2017, we announced the substantial investment by Sheffield Haworth into the share capital of the Group. Collaboration with Sheffield Haworth is continuing to develop and beginning to unlock opportunities that were formerly closed to us. In addition, we continue to concentrate our efforts on mitigating any slowdown in contractor revenue with a focus on tighter cost control, higher margin work and an increase in permanent placement revenues. To this end, we are therefore optimistic of a better second half and of being able to report a turnaround in the results."