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Specialist recruitment service provider Nakama Group (NAK: AIM) reported revenue of £8.6 million for the six months ending 30 September 2013, on par with revenue generated by the company during the same period the year before.
Gross profit for the period remained at a relatively similar level, year-on-year, rising slightly by +1% to £2.1 million from £2.08 million. Compared with a net income of £9,000 for H1 2012, Nakama Group reported a net loss of £12,000 for the first half of 2013.
Ken Ford, Chairman of Nakama, commented: “While trading conditions in the UK remain challenging, we have pleasingly made some important strategic hires and increased our ability to deliver within a broader set of digital markets. We expect to continue to build on these foundations across the board and grow net fee incomes over forthcoming trading periods.”
“Furthermore, we have seen client growth across the APAC regions, with increased demand in the media and technology spaces, e-commerce, Search Engine Management / Search Engine Optimisation (SEM/SEO) throughout the region. Pleasingly the digital market continues to grow, as clients all look to expand their internal capabilities.”
Group revenue in the APAC region increased, while UK revenues decreased as a result of fewer contractors on-site compared with a year ago. Permanent recruitment revenue increased, resulting in increased net fee income.
Nakama Group provides a range of specialist recruitment services to clients through the placement of contract and permanent staff across the UK, Europe, Asia, and Australia. During the period, the Munich office, which was reported to be small and unprofitable, was closed.
Revenue from the UK (incl. European operations) fell during the period by -10.5% from £6.7 million in H1 2012 to £6 million this year. As a result, revenue generated from UK operations fell from 78% of the Group total to 69%, year-on-year.
According to the company, the first half of this year has seen growth in terms of internal head count in the London office and net fee income. Nakama London has also seen a significant uplift in temporary, freelance, and contract requirements issued by clients, resulting in a positive impact on billings. The company also launched a new Marketing Interim Division in London, which contributed to revenues in this period. Permanent revenues in all markets showed some improvements, and this was most notable within the Performance Marketing, Data & Mobile, and E-commerce sectors.
In contrast, Group revenue from the APAC region; Australia, Hong Kong, and Singapore, rose by +36.8% to £2.6 million from £1.9 million. Revenue generated from APAC operations increased from 22% in H1 2012 to 31% in H1 2013.
Nakama Group reports that it has continued to focus on its core objective in APAC, namely business development across the corporate and agency sector, encompassing a local, regional and global strategy. Moving forward, the company aims to concentrate their efforts on expanding new and existing client relationships and cross-selling services globally.
Looking forward, the company advised: “While trading condition in the UK to remain challenging, we have pleasingly made some important strategic hires and increased our ability to deliver within a broader set of digital markets.”
“We are therefore optimistic for the second half and look forward to meeting, head on, what is still a challenging marketplace, but one on which we feel we are strategically well-placed to capitalise.”
In trading today, the company’s share price rose by +18.75% to £0.01, a fall of -28.75% compared with a year ago. Based on its current share price, the company has a market value of £1.7 million.