UK-based specialist recruitment services provider Nakama Group (NAK:LSE) announced today its final results for the year ended 31 March 2019. Group revenue decreased by 20.2% when compared to the prior year, to £13.4 million.

“After a difficult period for the company, over the past year, the business has undergone further change and transformation,” Nakama stated.

The reduction in revenue was a result of APAC revenue decreasing to £3.0 million from £5.3 million last year, as well as the closure of the group’s activities in Australia. UK revenue also decreased to £10.4 million from £11.5 million in FY 2018.

The decrease in both markets was predominantly due to a slowdown in the contractor market.

“Although we are disappointed not to increase revenues, the significant improvement in EBITDA to £424,000 (2018: Loss £845,000) is in line with our turnaround strategy and provides a stronger base to begin the next financial year,” Nakama stated.

The EBITDA recovery was mainly as a result of good performance at Highams Recruitment and Nakama Hong Kong in addition to general cost reductions.

Operating profit increased to £91,000 (2018: loss £1,480,000).

In March 2019 Nakama announced that it had appointed Robert Thesiger as CEO.

Looking ahead, Chairman Tim Sheffield commented, “Trading so far this year has been in line with expectations, however, exceptional costs will be incurred as we continue the restructuring of some local offices.”

“Our objective is to continue to focus on financial discipline and improving revenues and profit margins over the year ahead,” Sheffield said.

In trading today Nakama shares closed at £0.90, up 2.2% on the day. Based on its current share price the company has a market value of £1.03 million.