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Nakama warns investors of 'significant loss' to come
Recruitment company Nakama warned investors on Tuesday that revenue for the year ending 31 March would be below that for the previous year, as improved trading predicted for its second trading half failed to materialise and dragged the group to a loss.
Nakama predicted revenue to be in the region of £16m, down from the £21.5m reported a year earlier, and that net fee income would slip to £5.5m from £6.2m, resulting in a "significant loss for the financial year".
When Nakama released its interim results on 28 November, the AIM-quoted firm expected an improvement in trading during the second half of the year, but since the interim results announcement, the expected improvements had not been forthcoming, with the business continuing to produce losses in Australia, Singapore and London, negatively impacting its overall financial position.
Andrea Williams, Nakama's recently appointed new chief executive officer, has begun a strategic review of the business and was "putting in place measures to stabilise" trading, reduce operating costs and grow net fee income.
However, the group said, "It will take time following the implementation of these measures before the Group's trading materially improves."
"The directors remain confident, however, that a restructuring of the business will enable the group to take advantage of the long-term growth opportunities in the data, analytics, digital, technology and creative recruitment market," Nakama's Tuesday morning update concluded.
As of 1450 GMT, shares had tumbled 20% to 1.30p.