LONDON (Alliance News) - Nakama Group PLC on Monday said it is cautious on achieving the long-term goals, as its loss widened in its ended financial year.
The recruitment consultancy firm said pretax loss widened in the year to the end of March to GBP1.5 million from GBP270,000 reported the year before, as revenue declined 25% to GBP16.8 million from GBP22.5 million.
Net fee income also decreased by 14% to GBP5.3 million from GBP6.2 million the year prior.
The results were hit by a revenue fall in Asia-Pacific region to GBP5.3 million from GBP8.8 million, while UK revenue was down to GBP11.5 million from GBP13.6. million year-on-year. The decrease in both markets was predominantly due to a slowdown in the contractor market, Nakama said.
The said it saw a loss on foreign exchange of GBP72,000 versus a gain of GBP127,000 in the year prior, due to the weakening of sterling against the other currencies in the markets Nakama has been trading in.
Looking ahead, the company said it plans to incur further costs as it continues the restructuring.
Therefore Nakama said it remains cautious on achieving the long-term operating profit margin set by the board. Instead, the company said it will focus on improving financial discipline and stabilizing revenue over the year ahead.
"After ceasing to trade with a high-volume client in Australia that location has struggled to deliver meaningful results as replacing such a large contract for services has proven to be far more challenging than expected," said Chief Executive Andrea Williams.
Shares in Nakama were trading 3.5% lower on Monday at 0.80 pence each.
