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World - Nakama Group sees revenue up +24%

27 July 2015

Nakama Group (AIM: NAK) the AIM-quoted recruitment consultancy working across the UK, Europe, Asia and Australia that provides staff for the Web, Interactive, Digital Media sectors, IT and Business Change has provided the following Preliminary Results for the year ended 31 March 2015.

 Financial results include group revenue increased by 24%  to GBP 21.7 million from GBP  17.5 million in 2014. Profit before tax increased substantially to £297,000 (2014: loss £121,000). Net fee income ("NFI") improved by 22%  to £5.3 million (2014: £4.4 million) and the NFI percentage remained stable at 25%  (2014: 25% ). Revenue across the APAC region increased by 18%  to £6.3 million (2014: £5.3 million) driven by the continuing shortage of skilled talent within specialised markets. On a constant currency basis, the increase would have been 28%. Revenue across the UK increased by 27%  to £15.5 million (2014: £12.2 million) due to an increase in contractors on site.

Ken Ford, Chairman of Nakama commented: "The Group has delivered another encouraging trading performance, in line with expectations and is now generating encouraging momentum.  I look forward to continued progress as we further establish and build our international footprint and brand."

He also provided the following outlook: “Trading in the first quarter is in line with our expectations although not without the normal recruitment challenges we face in terms of candidates, given the current candidate driven market. The Board looks to 2016 as a year in which the Group will continue to benefit from new staff members delivering an excellent service alongside increasing client demand”.

Operationally the group has announced a new London office with increased space for growth. Sales consultants increased to 67 at year end  The Group announced the appointment of Group head of people and culture alongside the initiation of a global internal learning and development training programme to better streamline and unify Nakama working procedures and HR requirements across the breadth of their offices.

Ford commented: "During the year we have strengthened our management team throughout the Group with strategic hires and internal promotions to ensure all offices are being managed by people who lead by example and are driven by aligning themselves to providing the quality of service that we offer and believe in. We continue to look to further recruit strong and driven individuals to meet our client and candidate needs.

"We are currently upgrading our website and on-line marketing and technology infrastructure so as to improve the Group's internal and external communications capabilities and to further grow new business traffic to all our offices.

"We have identified other geographies where we believe there is strong client demand for Nakama's services and we are currently in the process of opening new offices, which we will update on in the coming months.

As of last trade, Nakama Group PLC traded at £4.55, 65.45% above the 52 week low of 2.75 set on the 29th August, 2014.  This means the company is valued at £5.33 million.