Nakama Group plc (AIM:NAK) reported yesterday that CFO Angus Watson stepped down effective immediately and the group’s Australian subsidiary may have difficulty in meeting an AUD 700,000 (€439,686) payment due last month to the Australian Tax Office.

The specialist recruitment services provider said the tax liabilities arose during trading operations between July 2016 and September 2017.

Nakama operates in the executive search, technology, creative and design, media, client services, analytics and data science, and innovation and transformation sectors from offices in the UK, Europe, Asia, Australia and North America. The group’s Highams brand specialises in the financial services sector in the UK and Europe.

 Nakama said its board is considering ways to fund the Australian subsidiary to pay the tax and may approach the tax office about rescheduling the payments.

In addition, the board is reviewing the group’s finance function and taking steps to strengthen internal procedures and controls. It’s being assisted by its largest shareholder, Sheffield Haworth Limited. The board is also seeking a new finance director in the near term.

Nakama reported in February that it expects a significant loss in this fiscal year as it experiences downturns in Australia, Singapore and the UK. It had appointed Andrea Williams as CEO in January, previously UK Managing Director at Australian listed staffing firm, The Ambition Group. Former CEO Rob Sheffield stepped down in September.