Nakama Group posts decline in profit after 'challenging' first half

AIM-quoted recruitment consultancy Nakama Group posted stable revenue but a decline in pre-tax profit for the half year ended September 30th, admitting it had been a 'challenging' period for the firm. Revenue for the six months totalled £8.63m (2012: £8.64m), with a 3% increase in net fee income (NFI) to £2.13m (2012: £2.08m), boosted by increased permanent placement fees overall. Pre-tax profit fell to £61,235 (2012: £141,029). The group reported making some "important strategic hires" and increased its ability to deliver within a broader set of digital markets. Looking ahead to the second half, the group said its performance so far was in line with expectations and anticipated an improvement overall. Chairman Ken Ford commented: "Whilst trading conditions in the UK remain challenging [...] 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. "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." NR