UK-based specialist recruitment services provider Nakama Group published a trading and corporate update.

“The Board is pleased to note that the decisive actions taken by the management team are starting to produce results,” the group stated. “Accordingly, although trading during the first three months of the financial year has been flat year-on-year, Nakama has seen a return to profitability in a number of the subsidiaries and, therefore, the group is trading in line with the Board's expectations.”

However, Nakama stated the improved trading performance seen in other subsidiaries has not been replicated in the group's Melbourne based subsidiary and the group has taken the decision to cease trading in Nakama Melbourne Pty Limited. As such the Board has today resolved to place Nakama Melbourne Pty Limited into Creditors' Voluntary Liquidation and is in the process of appointing a liquidator to assist with this process. The liquidation of the Melbourne subsidiary will reduce the group's liabilities in respect of the amounts owed to the Australian Tax Office by approximately AUD 190,000 (USD 140,493).

In May, the group announced that its Australian subsidiary may have difficulty in meeting an AUD 700,000 (USD 522,029) payment that was due in April to the Australian Tax Office.

Nakama further announced that Paul Goodship has resigned from his role as the Managing Director of the Nakama London business and a Board Director. Goodship will remain with the group until later in the year but will step down from the Board with immediate effect. Goodship was a founding member of the business and has led the business in London since October 2009.

The Board is in advanced discussions regarding the appointment of a non-executive director (subject to completing due diligence).

Goodship commented, "I have had the pleasure of founding and working in the Nakama business for nine years and will follow its successes with interest. I am fully supportive of the CEO and Board on their plans for the future and would like to thank them and all of the broader Nakama family for all their efforts and support during my tenure."

In addition, Nakama announced that CEO Andrea Williams, who is currently based in Dubai will be relocating back to the UK in September this year in order to focus on growing the business in the strategically important UK market. The group had appointed Williams as CEO in January.