LONDON (Alliance News) - Recruitment company Nakama Group PLC posted a lower pretax profit for the first half to the end of September on Friday as total revenue declined, hit by depreciating currencies in Asia Pacific.
Nakama's pretax profit fell to GBP169,000 in the half, down from GBP222,000 a year earlier, as total revenue for the group fell to GBP10.6 million from GBP11.1 million. The fall in revenue was down to a currency hit the group took in its Asia Pacific operation, as well as weaker revenue from its UK business. Asia Pacific revenue was up 18%, but would have increased 27% in constant currencies.
Net fee income in the half, however, rose to GBP3.0 million from GBP2.7 million as Nakama shifted its focus away from low-margin contract placements to permanent recruitment, which offers higher margins and from which its saw net fee income rise 32% in the first half.
"Since September we have conducted a widespread review of all group operations with a specific emphasis on sales. The group strategy for growth in all regions is a key focus aligning all offices and enabling the business to grow globally," said Chief Executive Rob Sheffield.
In a separate statement on Friday, Nakama also said Chief Operating Officer Kerri Sayers will step down at the end of this month. It also said it has appointed Angus Watson, who joined the company as a non-executive director at the start of September, as its chief financial officer.
Shares in Nakama were down 22% to 4.12 pence on Friday morning, the worst performer in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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