UK-based specialist recruitment services provider Nakama Group announced yesterday that it expects to incur a ‘significant’ loss for fiscal year 2018 as it continues to experience downturns in Australia, Singapore and the UK.

The group reported that revenue is expected to drop to £16.0 million from £21.5 million. Net fee income for the year ending March 31 is expected to be £5.5 million, down from £6.2 million the year before.

In January, the group appointed Andrea Williams as Chief Executive. The company stated that Williams is conducting a strategic review of operating businesses and putting in place measures to stabilise the business, reduce operating costs and grow net income.

The  group stated, “At the time of the release of the interim results on 28 November 2017, the board expected an improvement in trading during the second half of the year…. Since the interim results announcement, the expected improvements have not materialized and the business has continued to produce losses in Australia, Singapore and London, negatively impacting the group’s overall financial position.”

“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 said.

Shares in the recruitment company dropped 20% yesterday following the announcement.