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UK – Nakama buoyed by Asia-Pacific growth

31 July 2014

Specialist recruitment services provider Nakama Group (NAM: AIM) yesterday reported revenue of £17.5 million for the full year ending 31 March 2014, an increase of +5% compared with £16.7 million last year.

Nakama Group reported an operating loss of £76,000 for the year, an improvement against an operating loss of £174,000 in 2013. The company reported a loss for the year of £202,000, a slight improvement compared with a loss of £226,000 a year ago.

Nakama Group was previously known as Highams Systems Services Group. The company rebranded following the acquisition of Nakama Ltd in 2011.

Ken Ford, Chairman of Nakama Group, commented: “Our stated strategy of expanding into our specialist areas internationally is proving successful, but tough UK market conditions have had an impact on UK profits. Digital media recruitment, both into agencies and into corporate global clients, continues to grow and Highams’ traditional business of providing technology, business and professional services staff to the insurance and financial services sector remains firm.”

“With regard to APAC, we have continued to focus on our core objectives, namely business development across the corporate and agency sector encompassing a local, regional and global strategy. We aim to concentrate our efforts on expanding new and existing client relationships, cross-selling services globally, the continued hiring of staff in key locations, the training and development of existing staff and increasing the volume of business and conversion rates across the business,” he added. 

The company achieved revenue of £12.2 million across Europe, a decline of -5.1% from £12.9 million in 2013. The decrease in revenue is attributed by Nakama Group to a reduction in contractors on site during the first half of the year. In its home market, the UK, Nakama Group reported revenue of £11.5 million, a decrease of -1.7% from £11.7 million a year ago. Excluding the UK, revenue across Europe fell by -39% to £726,000, down from £1.2 million last year. 

Across Asia Pacific, revenue increased by +39.4% to £5.3 million, up from £3.8 million last year. Revenue from Hong Kong increased by +8% from £462,000 to £499,000. In Singapore, strong revenue growth of +85.5% was reported, rising from £228,000 in 2013 to £423,000 in 2014. Despite ongoing tightness in the Australian staffing market, growth of +40.6% was reported, with revenue rising from £3.1 million last year to £4.4 million this year.   

Nakama provides a 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 in the UK, Asia and Australia.

Looking forward, Mr Ford concluded: “Trading in the first quarter of our financial year has improved in terms of both net fee income and profitability. Finding good quality candidates is still challenging, but candidates are now more willing to consider changing employers so as to progress their careers and they also now have more opportunities to choose from.”